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Agnico Eagle strikes gold with investment in Finland-focused FireFox

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    Agnico Eagle strikes gold with investment in Finland-focused FireFox

Agnico Eagle’s investment in FireFox Gold forges a partnership that could potentially yield substantial returns. The deal stipulates that Agnico may secure a 51% interest in Kolho by allocating $5 million towards exploration within five years. Beyond this, there is the opportunity to form a venture with FireFox for further development of the project, assuming the role of an operator and investing an additional $7.5 million for a 24% ownership stake, affirming a promising future for both companies.

FireFox CEO, Carl Löfberg, exclaimed, “Our company was the first junior gold explorer established around a Finland-based CEO and Finland-based exploration management. Now we are part of a growing community of local and international mining professionals in Finland, and we find ourselves working closely with Europe’s largest gold miner. We are thrilled to be on this journey with Agnico Eagle and are eager to unlock the potential that lies within the partnership.”

In a significant development, Denver-based Crescat Portfolio Management, renowned for its Precious Metals Fund that has witnessed an impressive 27.8% gain since its inception three years ago, has acquired a 17.8% stake in FireFox, indicating widespread confidence in the explorer’s potential.

FireFox’s completion of airborne magnetic surveys and limited reconnaissance mapping and sampling on the expansive 120-sq.-km Kolho property northeast of Rupert Resources‘ Ikkari discovery and FireFox’s Sarvi property, underscores the relentless pursuit of progress. Notably, Ikkari, with its projected annual gold production of 200,000 oz., as outlined in a 2022 preliminary economic assessment, serves as a beacon of hope for FireFox’s future endeavors.

Agnico’s infusion of capital through private placement will be channeled towards drilling and exploration at FireFox’s Mustajärvi project, which holds a more advanced status than Kolho. However, it’s important to note that the junior also possesses the Jeesiö and Sarvi properties, where the pursuit of earlier stage exploration targets is being diligently advanced.

Market behavior following these developments unsurprisingly reaffirms the impact, with shares in FireFox remaining steady at C$0.055 apiece, valuing the company at C$7.7 million. Meanwhile, shares in Agnico Eagle dipped slightly by 2.2% in the same session to C$72.28, with a market value of C$35.8 billion, potentially indicative of an intensified determination to expand and diversify.