Agnico-Eagle Increases Stake in Comaplex Minerals

Agnico-Eagle Mines Limited (AEM) is increasing its stake in Canada's northern territories after the company announced Sunday night that it purchased 7,628,571 common shares, or approximately 14.5%, of Comaplex Minerals Corp. (CXMLF.PK) from Troy Resources NL in a private transaction.

Upon the closing of the transaction, Agnico-Eagle's interest in Comaplex would be 8,228,571 common shares (approximately 15.6% of the outstanding common shares), which Agnico-Eagle believes would make it the largest single shareholder of Comaplex. The agreement is subject to customary closing conditions.

Comaplex's main assets are a 78% interest in the Meliadine West gold project and 50% of the Meliadine East gold project, both near Rankin Inlet, Nunavut Territory, Canada.  The company is currently conducting a drilling and underground evaluation program as part of a scoping study on the Meliadine West project. 

Agnico-Eagle said that should it decide in the next 18 months to bid for a majority interest in Comaplex, it agrees to pay the difference between the final sales price and the C$6.15 per share offered now. 

Blackmont analyst Richard Gray said:

This investment closely follows Agnico's recent investment in Gold Eagle Mines (GEAFF.PK) as the company positions itself for growth in 2012 and beyond.

He added that Comaplex's assets are in the same region as Agnico-Eagle's Meadowbank project.

He maintained his "hold" recommendation and C$71 price target on the stock.