Agnico bets $60M more on stake in Lassonde-backed Cadillac in Abitibi

Agnico Eagle Mines (TSX: AEM; NYSE: AEM) is paying $60 million (US$43 million) for an additional stake in soon-to-be-listed Cadillac Mines (TSX: CADY) as Canada’s biggest miner strengthens its position in Quebec’s Abitibi greenstone belt and secures exposure to nearby gold exploration projects.

Toronto-based Agnico is taking part in a private placement alongside Cadillac’s $385 million initial public offering, buying about 8.7 million common shares of the company at the IPO price of $6.90 apiece, according to statements issued by the two companies. This will give Agnico an ownership stake of about 11% in Cadillac once the transactions close.

Before the private placement, Agnico already owned 22.8 million Cadillac shares for a 9.7% holding. Former Reunion Gold head Rick Howes serves as Cadillac’s CEO, while Franco-Nevada (TSX, NYSE: FNV) co-founder and Canadian Mining Hall of Fame member Pierre Lassonde is chairman.

Agnico’s move aligns with the major’s long-standing strategy of backing explorers and developers operating in regions where it already has a strong presence. Cadillac’s land package complements Agnico’s existing portfolio in Abitibi, where it operates mines including Canadian Malartic, LaRonde and Macassa, while advancing development projects such as northeastern Ontario’s Upper Beaver.

Previous investments by Agnico include the purchase of stakes in Canadian developers such as Wallbridge Mining (TSX: WM), Maple Gold Mines (TSXV: MGM) and Cascadia Minerals (TSXV: CAM). By providing capital, it has gained exposure to prospective exploration assets in districts it considers core to its long-term growth pipeline.

Success on those properties could ultimately provide future mill feed or acquisition opportunities to complement Agnico’s operating mines.

Abitibi focus

Cadillac was created to assemble a large portfolio of gold exploration properties along the prolific Cadillac-Larder Lake Break in the Abitibi Greenstone Belt, which has produced more than 200 million oz. gold over the years.

It now owns about 40 km of strike length and one of the greenstone belt’s largest land packages. Key assets include the historic Kerr-Addison mine, the Galloway gold project and the Geminid nickel-sulphate project.

Located about 35 km east of Kirkland Lake, Ont., Kerr-Addison produced 11 million oz. gold from 1938 to 1996. 

Kerr-Addison holds 78.5 million indicated tonnes grading 1.34 grams gold per tonne for contained metal of 3.4 million oz. gold and 25.9 million inferred tonnes grading 2.7 grams gold for contained metal of 2.2 million oz. gold, according to a February 2026 resource.

New name

Toronto-based Cadillac recently changed its name from Gold Candle to better reflect its growing presence along the Cadillac-Larder Lake Break. It plans to use proceeds from the IPO to advance exploration across its portfolio while evaluating opportunities for future resource growth.

Due to stronger-than-expected demand, Cadillac raised its stock offering from an initial size of about $363 million. The closing of the IPO is expected to occur by Aug. 5, subject to customary closing conditions. The Toronto Stock Exchange has conditionally approved the listing of the company’s common shares.

Agnico will have the right to participate in future equity financings by Cadillac in order to maintain its pro rata ownership interest in the company, according to Friday’s statement.