Agnico Eagle Mines agreed to sell the El Barqueño gold-silver-copper project in Mexico to Luca Mining. The transaction is valued at up to $60 million. Agnico Eagle will also retain a 2% net smelter return royalty on specific portions of the property.
The payment structure begins with an initial $10 million in Luca Mining shares. Two deferred contingent payments of $15 million each follow the initial equity transfer. Production milestones account for the final $20 million in potential payments.
CEO Ammar Al-Joundi confirmed Agnico Eagle will not participate in Barrick Gold's proposed North American asset IPO. Al-Joundi stated the company is focusing exclusively on its own strategic plan. This divestment underscores a broader effort to optimize Agnico Eagle's existing portfolio.