Agnico doubles Wallbridge Mining stake to over 19%

Agnico Eagle Mines (NYSE, TSX: AEM) has more than doubled its stake in Wallbridge Mining (TSX: WM) as part of the company’s strategy to gain exposure to potential gold-mining assets across Canada.

In a statement on Wednesday, Agnico said it has acquired nearly 244 million shares of Wallbridge for a total investment of C$22.44 million.

Prior to that, the Toronto-based gold miner already owned about 115.36 million Wallbridge shares, representing 9.44% of those outstanding, plus 6.27 million in share purchase warrants. After closing, it would own approximately 359.29 million shares, for a 19.62% interest, which could increase further to 19.9% should Agnico opt to exercise those warrants.

The investment is part of a C$56 million private placement of Wallbridge shares at C$0.092 each. The offering was priced at a 15% premium to the stock’s 20-day volume-weighted average on the Toronto Stock Exchange.

Shares of Wallbridge rose to C$0.10 by Wednesday afternoon following the announcement, taking its market capitalization to C$120.3 million ($87.5 million). Agnico’s stock also rose nearly 7%, for a market capitalization of C$122.6 billion ($89.3 billion).

The remaining shares of the placement are to be purchased by Waratah Capital Advisors, which would also own an approximate 19.9% stake (partially diluted) in Wallbridge post-closing.

In connection with the private placement, Wallbridge said it is also seeking shareholder approval for a 20:1 share consolidation and a renaming of the company to Sunday Lake Gold.

Funds for Fenelon PFS

In its press release, the Canadian gold junior said it will use the funds to complete a pre-feasibility study on its flagship Fenelon gold project, which is currently has a defined gold resource of 1.75 million oz. indicated and 1.65 million oz. inferred from several discoveries made over the years.

In March 2025, Wallbridge completed an updated preliminary economic assessment based on this resource, outlining a potential 16-year mine averaging 107,000 oz. of production a year. Its net present value (5% discount, after tax) was estimated at C$706 million, with an internal rate of return of 21%.

The project is part of the 598 km² land package the company has assembled along the Sunday Lake deformation zone in the Abitibi region crossing both Ontario and Quebec.

“In our view, these investments underscore the quality and scale of our flagship asset, Fenelon, while providing the capital required to advance it through infill drilling and a pre-feasibility study, which we expect to deliver in late 2027 or early 2028,” Brian Penny, CEO of Wallbridge, commented in the release.

For Agnico, the investment would bolster its exposure to an advanced-exploration gold asset located on the same trend as its Detour Lake mine, which opened in 2013. It follows last week’s announcement that it would invest as much as C$2 billion to expand Detour Lake — currently Canada’s largest gold operation — beyond the open pit.