S2 Resources (ASX:S2R) has signed binding agreements with Agnico Eagle Mines (NYSE:AEM) to sell its Fosterville exploration licence in Victoria.
Under the agreement, Agnico will pay $17 million to S2 for the exploration licence, which is located adjacent to its Fosterville Gold Mine.
As part of the acquisition, S2 Resources is undertaking a strategic placement, in which Agnico will purchase $3 million worth of S2 shares at an issue price of $0.101. The issue price is based on the 20-day volume weighted average price on 28 October 2025.
Salient Corporate acted as corporate advisor to the transaction, while Corrs Chambers Westgarth acted as legal advisor.
Following the placement, Agnico is expected to be S2’s fourth largest shareholder with a 5.6% stake in the company, behind Jupiter Asset Management (13.6%), Mark Creasy (12.7%), and Paradice Investment Management (8.2%).
The tenement sale is subject to Victorian Government approval and satisfying other customary conditions. The closing can take up two months to complete. Upon completion, the placement will be completed within five business days.
S2 Resources, which has a market capitalisation of $41.62 million, says the funding positions the company as a well-funded explorer able to pursue various exploration opportunities without the requirement for near-term dilution from equity funding.
The company will focus on a maiden drilling program across geophysical targets at the Warranweena Project in New South Wales, where S2 is earning up to an 80% interest in ground held by privately held Oxley Resources.
In parallel, negotiations are still in progress with the traditional owners of the Jillewarra area in Western Australia, to enable the granting of tenements and starting exploration over gold targets at Jillewarra.
Write to Aaliyah Rogan at Mining.com.au
Images: Agnico Eagle Mines
