Agnico Eagle Mines Limited AEM has agreed to sell its Delta base and precious metals project and Helm Bay gold project to Vizsla Copper Corp. The transaction is expected to close in the fourth quarter of 2026, subject to customary conditions and TSX Venture Exchange approval. 

Under the agreement, Agnico Eagle will receive roughly 22.5 million Vizsla Copper common shares at closing. AEM will also receive 2.9 million deferred shares, subject to shareholder approval. The shares will be issued at a deemed price of C$1.26 per share, representing an aggregate value of approximately C$32 million. AEM will also receive around 3.04 million warrants exercisable at C$1.95 per share. Following the transaction, Agnico Eagle is expected to hold approximately 19.99% of Vizsla Copper. 

Agnico Eagle will retain a 2% net smelter return royalty on Delta and a 3% net smelter return (NSR) royalty on Helm Bay. In addition, Vizsla Copper will make C$20 million in contingent milestone payments related to Delta. These include C$5 million upon disclosure of a mineral resource estimate containing at least 300,000 copper-equivalent tons, C$5 million upon completion of a feasibility study and C$10 million upon achieving commercial production.  

The payments may be made in cash or common shares at Vizsla Copper's election, subject to applicable limitations. For share-based payments, the number of shares will be based on Vizsla Copper's 20-day volume-weighted average trading price, subject to a minimum price of C$1.26 per share. Any payment that would cause Agnico Eagle's ownership to reach 20% or more, or cannot be issued in shares due to regulatory approval limitations, will be paid in cash. 

Agnico Eagle has also committed to participate in Vizsla Copper's next qualifying equity financing for up to C$5 million, further aligning the two companies as Vizsla Copper advances the Delta project. 

Agnico Eagle has committed to participate in Vizsla Copper's first equity financing following the agreement, for up to C$5 million or 10% of the financing proceeds, whichever is lower. The commitment is subject to the financing raising at least C$30 million and being completed by Dec. 31, 2026. 

Price Performance of AEM

Shares of AEM are up 32.1% over the past year compared with the industry's 42.9% rise.

Image Source: Zacks Investment Research

AEM's Zacks Rank & Key Picks

Agnico Eagle carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are  Worthington Steel, Inc. WS,  Carpenter Technology Corporation CRS and  Avient Corporation AVNT. WS currently sports a Zacks Rank #1 (Strong Buy), while CRS and AVNT carry a Zacks Rank #2 (Buy). You can see  the complete list of today's Zacks #1 Rank stocks here.