May. 27 at 11:11 AM
$FURY $AEM
Fury Gold Mines anounces C
$4.3M strategic investment
Fury Gold Mines (FURY) has entered into a subscription agreement with Agnico Eagle Mines (AEM) pursuant to which Agnico Eagle has acquired, on a non-brokered private placement basis, 6,728,000 units in the capital of the Company at C
$0.64 per Unit for gross proceeds of C
$4,305,920. Each Unit consists of one common share of Fury and one common share purchase warrant. Each Warrant is exercisable to purchase one Share at C
$0.80 for a 36-month period from the date of issuance on May 26, 2025, subject to accelerated expiry after 24 months if the market price of the Shares closes above the Exercise Price for twenty consecutive trading days.
Agnico previously acquired 3,750,000 Shares and this investment increases Agnico's basic ownership to 6.3% of Fury's issued shares and its defined "ownership interest" to 9.9% calculated on a "partially diluted" basis. Proceeds from the Private Placement will be allocated as follows: C
$3.9M for exploration under the Company's 2025 exploration program at the Committee Bay project in the Kitikmeot Region of Nunavut, which will be announced in the coming weeks, and the remainder is available for other projects and general corporate purposes.
All Shares, Warrants and any Shares issued on exercise of Warrants will have a four-month resale restricted hold period in Canada. These securities have not been and will not be registered under the United States Securities act of 1933. On closing of the Private Placement, the Company and Agnico Eagle entered into an investor rights agreement pursuant to which Agnico Eagle has been granted certain rights, including the right to nominate one person to the board of directors of the Company, and the right to participate in certain equity offerings and top-up its holdings in relation to dilutive issuances in order to maintain or acquire up to the greater of Agnico Eagle's then-current ownership interest and an ownership interest of 9.9%.
