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Barsele to Acquire 100% Controlling Interest in Swedish Barsele Project from Agnico Eagle
Friday 14 May 2021

Canada-based junior exploration company Barsele Minerals Corp. (TSX Venture: BME) has entered into a non-binding letter of intent (LOI) to acquire 55% interest in the Barsele Project, located in Sweden, from Agnico Eagle Mines Ltd., giving Barsele 100% controlling interest in the project, the company said.

The purchase price payable by Barsele to Agnico Eagle will consist of the following a cash payment of USD 45m, the issuance of warrants exercisable into 6m common shares of Barsele, a 2% net smelter return royalty on all minerals produced from the Barsele Project, and a contingent value right with respect to future gold mineral reserves and mineral resources identified at the Barsele Project.

The company currently holds the remaining 45% interest in the Barsele Project and upon completion of the Proposed Transaction, would consolidate control of the Barsele Project.

The monetisation of Agnico Eagle's interest in the Barsele Project will allow Agnico to focus on the most advanced projects in its exploration and development pipeline, while retaining an interest in the Barsele Project as a significant equity investor and royalty holder.

The LOI provides that the company and Agnico Eagle will negotiate and enter into a definitive purchase and sale agreement containing customary terms and conditions for a transaction of its nature, whereby Barsele will acquire Agnico Eagle's 55% indirect interest in Gunnarn Mining AB (which holds the Barsele Project).

Upon closing of the Proposed Transaction, Agnico Eagle and Barsele will enter into an investor rights agreement that will grant Agnico Eagle a participation right in certain future financings to maintain

BMO Capital Markets is acting as financial advisor to Barsele in connection with the Proposed Transaction and Stikeman Elliott LLP is acting as Barsele's legal advisor.
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Date Published: 14/05/2021

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