Agnico sheds entire 18% stake in Royal Road

Core Insights - Agnico Eagle Mines has divested its entire 18% stake in Royal Road Minerals for approximately C$5.51 million, selling nearly 47.9 million shares at C$0.115 each, which is a 6% discount to the market price on the day of disclosure [1][2][4] - The sale is part of Agnico's strategy to monetize investments and focus on organic growth, following a significant cash generation move where it sold its stake in Orla Mining for nearly C$561 million [4][5] - Royal Road Minerals has welcomed Rio2 as a new shareholder, acquiring approximately 39.8 million shares, or 15% of its outstanding stock, indicating confidence in Royal Road's portfolio and growth potential [6][7] Company Actions - Agnico Eagle Mines has a history of investment in Royal Road, having previously increased its stake in May 2019 with a C$5.2 million investment at C$0.20 per share [3] - The divestment aligns with Agnico's periodic review of its growth portfolio, emphasizing a shift towards organic growth strategies [4] - Rio2's acquisition of shares in Royal Road is seen as a strategic move, with the company expressing interest in Royal Road's geologically attractive portfolio for future diversification [6][7] Market Context - Following Agnico's sale, Royal Road's shares traded at C$0.16, reflecting a 3.1% intraday gain and a market capitalization of C$39.9 million (approximately $28.6 million) [2] - Rio2's main asset, the Fenix gold oxide project in Chile, is one of the largest undeveloped gold projects in the Americas, with nearly 5 million ounces in measured and indicated resources, expected to produce 81,900 ounces of gold annually over a 17-year mine life [8]