Agnico Eagle has agreed to sell its 55% interest in the Barsele gold project in northern Sweden, shifting from direct project ownership to a royalty-based exposure while significantly increasing its equity position in partner Goldsky Resources.
Under the transaction, Agnico Eagle will receive $20 million in cash and 75.5 million Goldsky shares, valued at C$2.64 each, resulting in Goldsky becoming the sole owner and operator of the Barsele project. The deal also includes a 2% net smelter return royalty retained by Agnico Eagle.
The sale will be executed through Agnico Sweden AB’s divestment of its stake in Gunnarn Mining AB. Completion is expected by June 30, subject to approvals from the TSX Venture Exchange and Goldsky shareholders.
Following the transaction, Agnico Eagle’s ownership in Goldsky will increase to approximately 32.5% on a non-diluted basis, up from about 4.1%, with its shareholding rising from roughly 7.4 million to nearly 82.9 million shares. An amended investor rights agreement will allow Agnico Eagle to participate in future equity financings to maintain ownership of up to 19.99% and to nominate up to three directors to Goldsky’s board, though the company said it has no immediate plans to exercise those rights.
Agnico Eagle said the move reflects ongoing portfolio optimization. While exploration over the past decade has expanded Barsele’s mineral resources, the company noted that additional work is required to move the project toward development.
Located in Västerbottens Län, around 600 km north of Stockholm, the Barsele project remains one of Sweden’s more advanced gold exploration assets. Agnico Eagle continues to operate producing mines across Canada, Australia, Finland and Mexico.
