Agnico Eagle Mines will build a roughly 10% stake in Radisson Mining Resources, helping fund underground work at the gold explorer's flagship project in Quebec.

The big Canadian gold producer on Monday said it has agreed to buy about 53.4 million Radisson units for a total 57.2 million Canadian dollars (US$41.5 million).

Each unit, which will be bought for C$1.07 apiece, comprises one-half share-purchase warrant of Radisson. Each warrant will entitle the holder to buy one share at a price of C$1.39. Radisson's shares last closed at C$1.01, up 12% so far this year.

For Agnico, buying the stake is part of a strategy of building strategic investments in prospective opportunities it considers to have high strategic geological potential.

Radisson said the investment will support the launch of underground exploration at its O'Brien project in the Abitibi region.

The work is expected to include the development of an access ramp, related underground and surface mine infrastructure, and water-management facilities. Engineering and permitting work will begin immediately, Radisson said.