Gold miner Agnico Eagle Mines Ltd. AEM-T has acquired a minority stake in Canada Nickel Co. Ltd. CNC-X in what it says is an early stage investment in the growing critical minerals sector.

Under the deal, Agnico Eagle says it has bought 19.6 million units of Canada Nickel in a flow-through offering at a price of $1.18 a unit for a total of $23.1 million.

Each unit includes one share of Canada Nickel and 0.35 of a share purchase warrant, which entitles the holder to acquire a share at a set price of $1.77 at any time before Dec. 29, 2026, subject to conditions.

The investment gives Agnico Eagle a 12 per cent stake in Canada Nickel on a non-diluted basis and also gives it a right to maintain its stake in Canada Nickel in future financings and to nominate one person to the company’s board of directors.

Canada’s mining industry has been increasing its focus on critical minerals like copper, nickel and cobalt needed as part of the transition away from fossil fuels.

Canada Nickel, which owns the Crawford nickel-cobalt sulphide project north of Timmins, Ont., raised a total of nearly $34.7 million in its offering.