Agnico-Eagle Mines (AEM +0.9%) pushes near a 52-week high after agreeing to sell nearly 7.8M common shares of Queenston Mining (QNMNF.PK) to Osisko Mining (OSKFF.PK) for C$5.43/share, or total cash proceeds of ~$42M. Osisko's acquisition of the 9.2% stake in Queenston will be completed using available cash on hand.
Osisko Mining's (OSKFF.PK) $549M deal to buy Queenston Mining (QNMNF.PK) allows it to gain access to Ontario's Lake Kirkland region, which once produced more than 3.5M oz. of gold. The Upper Beaver project, expected to produce 1.1M oz. of gold over a 10-year mine life, has necessary permits to begin advanced exploration and is expected to go into production in 2016.