Under the agreement, the company has agreed to purchase a total of 6.25-million units at a price of $0.76 a unit.
Agnico-Eagle president and CEO Sean Boyd noted that the agreement was in line with the company’s strategy to further its presence in Sonora state in Mexico.
Kootenay president and CEO James McDonald stated that with this investment the company has gained additional source of capital for its precious metals mining, development and exploration.
"This investment recognises the quality and near-term potential of our flagship Promontorio silver project and our other principal exploration targets in Sonora, Mexico," added McDonald.
Further, with each share purchase warrant Agnico-Eagle has an option to acquire one common share of the company for a period of two years raising CAD3.37m ($3.28 m).
