Agnico Eagle Invests $14.8 Million in Scout Discoveries

Scout Discoveries Corp., a mineral exploration and drilling company based in Coeur d'Alene, Idaho, has announced a significant strategic investment and a series of agreements that will bolster its exploration efforts and expand its portfolio.

Agnico Eagle Mines Limited, a leading gold producer, has agreed to invest $14.8 million in Scout for 14.9% ownership. Simultaneously, The Electrum Group, Scout’s largest shareholder, has committed $10.2 million, increasing its ownership stake to 30% at a share price of $1.50. Together, these investments form a total private placement of $25.002 million, with no warrants or fees attached.

The funds will be directed towards exploration activities at Cuddy Mountain, Speed Goat, and other projects. Agnico Eagle has the potential to earn up to 70% interest in Scout’s Elk City and Muldoon projects by funding up to $60 million and $30 million, respectively, over eight years. The company has budgeted approximately $9.4 million for exploration expenditures through 2027.

In a related development, Scout has entered into arrangements with Bronco Creek Exploration Inc. and Basin and Range Resources, LLC, both wholly-owned subsidiaries of Elemental Royalty Corp. These arrangements will see Scout acquire 100% ownership of the Speed Goat, Muldoon, Robber Gulch, Century, Moose Ridge, Independence, and Silverback projects. The acquisition will eliminate approximately $4.5 million in future cash payments and $8.4 million in future work commitments. These projects were generated by the Scout team while they were at Bronco Creek from 2018 to 2022, before Scout was spun out in 2023.

Scout and Agnico Eagle will also execute a definitive earn-in agreement covering Scout’s Erickson Ridge and South Orogrande projects (collectively, the “Elk City Project”) in Idaho. Under this agreement, Agnico Eagle may earn a 51% interest in the Elk City Project by funding $20 million of work over a five-year period. Upon exercise of the option, Scout and Agnico Eagle will enter into a joint venture agreement, allowing Agnico Eagle to potentially earn an additional 19% interest, for a total 70% interest, by funding a further $40 million over the following three years.

Agnico Eagle also holds the option to enter into an earn-in agreement on Scout’s Muldoon project. If exercised, Agnico Eagle can enter into an agreement to earn into a 51% interest in the Muldoon project by funding $10 million of work over a five-year period. Following such funding, the Muldoon earn-in agreement will provide Agnico Eagle with the option to enter into a joint venture agreement, allowing it to earn an additional 19% interest, for a total 70% interest, by funding a further $20 million over the following three years.

Scout will serve as the operator during the earn-in periods, with drilling performed by Scout Drilling LLC. Initial exploration programs are estimated to total approximately $9.4 million through the end of 2027.

Curtis L. Johnson, President and CEO of Scout, expressed enthusiasm about the partnership, stating, "Partnering with Agnico Eagle, one of the most respected gold producers in the world, at Elk City and Muldoon, and welcoming them as a 14.9% shareholder, is the strongest endorsement yet of our work. It builds on the foundation laid with our earlier partners, and we are grateful to Electrum, the Bronco Creek team at Elemental Royalty Corp., and the shareholders who have backed this vision from the beginning."

This strategic move by Scout and Agnico Eagle marks a significant step forward in the company’s exploration and development efforts in Idaho.