Post says Agnico-Eagle muscles into Goldcorp's backyard

Agnico-Eagle Mines Ltd (C:AEM)
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Thursday July 28 2011 - In the News

Also Rubicon Minerals Corp (C:RMX) In the News
Also Goldcorp Inc (2) (C:G) In the News

The Financial Post reports in its Thursday edition that for the second time in three years, Agnico-Eagle is making a move into Goldcorp's backyard. The Post's Peter Koven writes that Agnico announced Wednesday it is investing $70-million in Rubicon Minerals, seen as the most exciting junior development company in the Red Lake gold camp in Ontario. It will own 9.2 per cent of Rubicon and help the company advance its project. Of course, the dominant company in Red Lake is Goldcorp, the world's second-largest gold miner. With this investment, Agnico is sending a strong message that it wants to be a player there as well. This scenario has played out before. In June, 2008, Agnico-Eagle invested $50-million in Gold Eagle Mines Ltd., which was then the hottest junior company in Red Lake. Goldcorp noticed. A few weeks later, it struck a deal to buy Gold Eagle for $1.5-billion. Investors are already betting that the same thing could happen with Rubicon, as the stock jumped 16 per cent in afterhours trading on Wednesday. Agnico is interested in Rubicon's Phoenix gold project, where it has made a high-grade discovery of more than two million ounces of gold resources. It also holds Red Lake ground.

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