Expect More Of This

Pretend for a minute that you’re a gold miner producing more metal each year than you discover. Your reserves, in other words, are shrinking, which is unacceptable in the long run.

So at some point you’ll have to acquire more ounces in the ground. You can do this directly, by buying another miner. Or, you can make “strategic investments” in juniors and explorers that are promising but aren’t yet sure things.

The latter strategy costs less up front, while creating relationships that give the senior miner an insider’s view of how its target companies are doing, along with a preferred position, if things work out, to buy the rest of those companies.

Here’s a perfect example of this strategy, featuring two miners that aren’t in our Portfolio but probably should be:

Agnico Eagle announces investment in Radisson Mining Resources

August 24, 2026

Agnico Eagle Mines Limited (NYSE: AEM) announced today that it has entered into a subscription agreement with Radisson Mining Resources Inc. (NASDAQ: RMRDF), pursuant to which Agnico Eagle agreed to acquire, in a non-brokered private placement, 53,420,000 units (”Units”) of Radisson at a price of C$1.07 per Unit for total consideration of C$57,159,400 (the “Private Placement”). Each Unit is comprised of one Class A common share of Radisson (a “Common Share”) and one-half of one common share purchase warrant of Radisson (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder to acquire one Common Share at a price of C$1.39 for a period of sixty months following the closing date of the Private Placement, subject to acceleration in certain circumstances.

On closing of the Private Placement, Agnico Eagle is expected to own 53,420,000 Common Shares and 26,710,000 Warrants, representing approximately 10.45% of the issued and outstanding Common Shares on a non-diluted basis and approximately 14.90% of the Common Shares on a partially-diluted basis (assuming exercise of the Warrants held by Agnico Eagle at such time).

On closing of the Private Placement, Agnico Eagle and Radisson will enter into an investor rights agreement, pursuant to which Agnico Eagle will be entitled to certain rights, provided it maintains certain ownership thresholds in Radisson, including: (a) the right to nominate one person to the board of directors of Radisson; and (b) the right to participate in certain equity offerings in order to maintain or acquire up to the greater of Agnico Eagle’s then-current ownership interest and an ownership interest of 14.9% (on a partially-diluted basis) in Radisson.

Agnico Eagle is acquiring the Common Shares and Warrants as part of its strategy of acquiring strategic positions in prospective opportunities with high geological potential. Depending on market conditions, strategic priorities and other factors, Agnico Eagle may, from time to time, acquire additional Common Shares, Warrants or other securities of Radisson or dispose of some or all of the Common Shares, Warrants or other securities of Radisson that it owns at such time.

This deal doesn’t increase Agnico’s production in the short run, but does improve its growth prospects in the coming decade, for a fraction of what an immediate buyout would cost.

Radisson shareholders, meanwhile, liked what is clearly a vote of confidence from a big, sophisticated player:

For juniors and explorers, periodic financings are a necessary evil. They make growth possible but frequently knock the share price down for a while.

But strategic investments from seniors tend to attract new capital and raise the target company’s share price. With cash pouring into the senior miners, we’ll likely see many more of these deals in the year ahead. Enjoy the ride!