Mentioned:
Agnico Eagle is building their next big gold mine in Canada’s Arctic. But, why?
What’s happening:
- Agnico Eagle (NYSE: AEM) is investing approximately $2.4B USD to build a new gold mine at the Hope Bay project located in Nunavut
Why it matters:
- This is one of the single largest investments Agnico Eagle has ever made in Nunavut
Going deeper:
- The Hope Bay project was previously put into production by TMAC Resources prior to being sold to Agnico Eagle for roughly $286M CAD as well as assuming their existing debt financing
- Agnico Eagle currently has two producing gold mines in Nunavut and has been operating in the province for nearly two decades
- Agnico Eagle has publicly stated they expect the Hope Bay project to produce roughly 400,000 ounces of gold annually once it is in full scale production
The intrigue:
- The Canadian government has also committed $25M CAD to building a wind-power project at the Hope Bay project as part of Agnico Eagle’s mine construction
