Fury Gold Mines Ltd (TSE: FURY) (NYSEAMERICAN: FURY) (FRA: AUN1) now has millions in its pockets to utilize for exploratory drilling in Nunavut this year.
Canada’s leading gold producer Agnico Eagle Mines Ltd (TSE: AEM) (NYSE: AEM) (FRA: AE9) just increased its stake in Fury more than two-fold by investing C$4.3 million. Agnico Eagle now has a 6.3 per cent interest.
“We are pleased to have Agnico Eagle, one of Canada’s premier companies and a top global gold producer, make an additional investment that will permit Fury to advance our understanding of the exploration potential at our Committee Bay project in Nunavut,” Fury CEO, Tim Clark, said in a press release on Tuesday.
By boosting its stake in this Canadian gold junior, Agnico Eagle has taken an increased interest in the mining potential of the country’s northern territory. The major precious metal producer celebrated churning out 2 million ounces from its Meliadine Mine in Nunavut last fall.
In Q1 alone, Agnico Eagle produced 239,000 ounces from that mine site and its Meadowbank Complex in the Canadian north. Agnico Eagle holds the territory’s only two producing gold mines.
The Committee Bay project being explored and developed by Fury holds about 523,800 indicated gold ounces, according to a 2023 estimate. Fury once intercepted 101.4 grams per tonne gold over 3.1 metres on the property.
In 2023, gold accounted for approximately 46.7 per cent of Nunavut’s GDP. Mining companies spent over C$2.3 billion in the territory that year. Inuit employees in the industry collectively made over C$64 million during the 2023 calendar year.
The following year, then Prime Minister Justin Trudeau signed an agreement enabling the territory to collect the 50 per cent of the territory’s mining royalties that previously went to the federal government. This devolution agreement gave Nunavut total sovereignty over its own resources that it previously lacked.
Canada’s leading gold producer behind Agnico Eagle at the moment is Alamos Gold Inc. (TSE: AGI) (NYSE: AGI). However, that will soon be changing once Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA) and Equinox Gold Corp. (TSE: EQX) (NYSEAMERICAN: EQX) (FRA: 1LRC) complete their merger by the end of next month.
Between the Valentine Gold Mine in Newfoundland and the Greenstone operation in Ontario, the combined mining giant will be capable of digging up 590,000 Canadian gold ounces per year.
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