Highlights
- Agnico Eagle Mines (NYSE/TSX: AEM) has agreed to sell its Delta and Helm Bay projects to Vizsla Copper Corp. (TSXV: VCU) for shares, warrants, royalties, and contingent milestone payments rather than cash.
- Agnico will hold approximately 19.99% of Vizsla Copper at closing, potentially rising to about 22.0% pending shareholder approval, plus board nomination rights and a 2% royalty on Delta and 3% on Helm Bay.
- Vizsla Copper could owe Agnico up to a further C$20 million in milestone payments tied to reaching a resource estimate, a feasibility study, and commercial production at Delta; none of these are guaranteed to occur.
Agnico Eagle Mines Limited (NYSE: AEM; TSX: AEM) reported on September 8, 2026 that its subsidiary has agreed to sell its Delta and Helm Bay projects in Alaska to Vizsla Copper Corp. (TSXV: VCU; OTCQB: VCUFF). Rather than a straight cash sale, Agnico is being paid mostly in Vizsla Copper securities and future contingent payments, a structure that gives the major gold producer ongoing exposure to how the projects perform rather than a clean exit.
What Agnico Is Getting
At closing, Agnico will receive 22,523,283 Vizsla Copper shares, representing approximately 19.99% of the company, plus 3,041,480 warrants exercisable at C$1.95 for two years. A further 2,903,490 shares are set to follow once Vizsla Copper’s other shareholders approve the issuance, which would bring Agnico’s stake to roughly 22.0%. All of these shares are valued at a deemed price of C$1.26 each, for a total value of about C$32 million. Agnico will also receive a 2.0% net smelter return royalty on Delta and a 3.0% royalty on Helm Bay, though Vizsla Copper has the right to buy back half of either royalty for C$5 million at any time.
Beyond that upfront package, Vizsla Copper could owe Agnico as much as C$20 million more in milestone payments tied specifically to Delta: C$5 million if Vizsla Copper reports a resource of at least 300,000 tonnes of copper-equivalent metal, another C$5 million upon completing a feasibility study, and C$10 million if Delta reaches commercial production. Vizsla Copper can pay these in cash or shares at its choice, and none of these milestones are guaranteed to happen.
What Comes With the Stake
Because the deal makes Agnico an insider of Vizsla Copper, it’s classified as a “Reviewable Transaction” under TSX Venture Exchange rules and still needs exchange approval before closing, expected in the fourth quarter of 2026. Alongside its equity position, Agnico will get the right to nominate a board member, participation rights to maintain its ownership percentage in future financings, and has separately committed to putting up to C$5 million into Vizsla Copper’s next equity raise, provided that raise totals at least C$30 million and closes by the end of 2026. Agnico said this fits its broader strategy of taking strategic positions in early-stage projects with strong geological potential, similar to a pattern of recent investments the company has made in other junior explorers.
Sources
Editorial Disclosure
This article is based on a press release issued by Agnico Eagle Mines Limited on September 8, 2026, distributed via PRNewswire. Securities discussed: Agnico Eagle Mines Limited (NYSE: AEM; TSX: AEM) and Vizsla Copper Corp. (TSXV: VCU; OTCQB: VCUFF). Mining Markets Report has not received compensation from either company or any third party for this coverage. No staff member or principal of Mining Markets Report holds a position in either security at the time of publication. The transaction remains subject to closing conditions, including TSX Venture Exchange approval, and is expected but not guaranteed to close in the fourth quarter of 2026. The contingent milestone payments described in this article, tied to a future resource estimate, feasibility study, and commercial production at the Delta project, are not guaranteed and depend on future exploration and development outcomes that may not occur. Agnico Eagle has stated it may acquire additional securities of Vizsla Copper or dispose of its position over time; readers should not assume any particular future intention from this disclosure. Statements regarding closing timing, future ownership percentages, milestone payments, and Agnico’s future portfolio decisions are forward-looking and involve known and unknown risks; actual outcomes may differ materially. References to these companies are for market context and analytical purposes only and do not constitute an investment recommendation. All securities carry investment risk including possible loss of capital. Coverage on Mining Markets Report is for informational and educational purposes only; Mining Markets Report is not a registered investment advisor. Readers should conduct their own due diligence and consult a qualified financial advisor before making investment decisions.
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