Avenir Minerals, a wholly owned subsidiary of Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), is to acquire Fox River Resources Corp. (FOX:CSE) at CA$1.10 per share at a 20% premium on the 30-day price in an all-cash transaction of approximately CA$94 million. Fox owns the Martison Phosphate Project in Ontario, which will provide a large-scale supply of phosphate fertilizers as well as PPA (purified phosphoric acid) for the battery industry.
We bought Fox less than two years ago at CA$0.37 giving us a return of 197% in Canadian dollars. We will calculate the U.S. dollar gain once the transaction closes, which is expected in the third quarter. As expected, Fox share price jumped close to the transaction price once announced. We would hold, and urge all shareholders to vote in favor of the transaction. Avenir was formed as a subsidiary of Agnico with a mandate to advance high-quality critical and strategic mineral projects. Agnico is the company of choice for the Canadian government to explore for and develop a secure supply of critical minerals.
This is the first large acquisition for the company.
We think this is a good transaction for Fox, which otherwise would have had to suffer significant dilution to bring the project into production, as well as for Agnico Eagle, giving them an advanced project as a base for Avenir to grow. It uses all of Avenir's available cash but it could raise additional equity for additional transactions. Disclosure: Adrian Day's management company holds just under 15% of the shares of Fox.
TOP BUYS THIS WEEK include Agnico Eagle and Lara Exploration Ltd. (LRA:TSX.V).
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Adrian Day’s Global Analyst is distributed for $990 per year by Investment Consultants International, Ltd., P.O. Box 6644, Annapolis, MD 21401. (410) 224-8885. www.AdrianDayGlobalAnalyst.com. Publisher: Adrian Day. Owner: Investment Consultants International, Ltd. Staff may have positions in securities discussed herein. Adrian Day is also President of Global Strategic Management (GSM), a registered investment advisor, and a separate company from this service. In his capacity as GSM president, Adrian Day may be buying or selling for clients securities recommended herein concurrently, before or after recommendations herein, and may be acting for clients in a manner contrary to recommendations herein. This is not a solicitation for GSM. Views herein are the editor’s opinion and not fact. All information is believed to be correct, but its accuracy cannot be guaranteed. The owner and editor are not responsible for errors and omissions. © 2022. Adrian Day’s Global Analyst. Information and advice herein are intended purely for the subscriber’s own account. Under no circumstances may any part of a Global Analyst e-mail be copied or distributed without prior written permission of the editor. Given the nature of this service, we will pursue any violations aggressively.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees, or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in the securities mentioned. Directors, officers, employees, or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company release. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Agnico Eagle Mines Ltd., Fox River Resources Corp. and Lara Exploration Ltd., companies mentioned in this article.
