Agnico Eagle has taken a minority stake by investing around C$23.1m in Canada Nickel Company in a private placement of flow-through units.

In the brokered placement, Agnico Eagle acquired 19.6 million units at C$1.18 apiece. Each unit comprised one common share of Canada Nickel and 0.35 of one flow-through common share purchase warrant.

The transaction offered Agnico Eagle a non-diluted equity stake of 12% in Canada Nickel, or a 15.6% stake on a partially diluted basis.

Overall, Canada Nickel raised gross proceeds of C$34.7m in the offering.

The company will use the proceeds to unlock the potential of Timmins Nickel District, which it claims has the potential to become one of the world's largest nickel sulphide districts.

Canada Nickel noted that the securities issued as part of the offering are subject to a four-month hold period and one day.

Additionally, the company reached an investor rights agreement with Agnico Eagle, thereby granting the latter participation rights in future share issuances to maintain or increase its ownership stake.

It was also offered an option to nominate a director to Canada Nickel's board, a right Agnico Eagle currently does not intend to exercise.

For this transaction, Scotiabank served as the sole bookrunner and agent, while Scotiabank and Deutsche Bank were financial advisors to Canada Nickel.