The companies, which announced the nonbinding letter of intent on Wednesday, said that Barsele would make a $45-million cash payment to Agnico Eagle, issue shares such that Agnico Eagle would hold 14.9% of Barsele, issue warrants exercisable into six-million shares and a 2% net smelter return royalty.

“We see Barsele’s consolidation of the Barsele project as a positive outcome for all stakeholders,” said Agnico Eagle CEO Sean Boyd, adding that the company would retain an interest in the project as a significant equity investor and royalty holder.

Agnico Eagle’s Swedish exploration team significantly increased the mineral resources and geological understanding of the project, while building a strong social acceptance of the project.

"The opportunity to acquire a 100% controlling interest in the Barsele project represents a tremendous milestone for Barsele. We plan to significantly increase the drilling activity on the project with the goal of growing the current mineral resource estimates,” commented Barsele president and CEO Gary Cope.