AEM invested in Candelaria's Caballo Blanco gold project, June 06, 2017 08:50 ET
Candelaria Announces $9.7 Million Strategic Investment by Agnico Eagle
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 6, 2017) -
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Candelaria Mining Corp. ("Candelaria") (TSX VENTURE:CAND)(OTCQX:CDELF)(FRANKFURT:29LN) is pleased to announce Agnico Eagle Mines Limited ("Agnico") is making a strategic investment of $9,765,800 in Candelaria (the "Private Placement"). (All dollar amounts are in Canadian Dollars unless otherwise stated).
Upon completion of the Private Placement, Agnico will own approximately 9.95% of the common shares of Candelaria, through the purchase of 10,120,000 common shares at a price of $0.965 per share. No warrants are being issued. In connection with the closing of the transaction, Agnico and Candelaria will enter into an investor rights agreement pursuant to which Agnico will, provided Agnico owns at least a 5% interest in Candelaria (calculated in accordance with the investor rights agreement), have the right to participate in equity financings by Candelaria in order to maintain its 9.95% ownership interest in Candelaria, and the right to nominate one person (and in the case of an increase in the size of the board of directors of Candelaria to 10 or more directors, two persons) to the board of directors of Candelaria.
Ramon Perez, CEO of Candelaria, stated: "This strategic investment by Agnico, one of the world's top gold producers, is a strong endorsement of the quality and potential of Candelaria's Caballo Blanco gold project. We are excited to have this investment to allow us to initiate on our strategic objectives, principally intended to expand and upgrade the Caballo Blanco resource."
Candelaria intends to use the net proceeds of the investment for infill and definition drilling to enhance the classification and extension of Caballo Blanco's current mineral resource, exploration of highly prospective targets within the Caballo Blanco claim area, further technical and optimization studies, payment of final amounts owed to Alio Gold Inc. (formerly known as Timmins Gold Corp.) in connection with the acquisition of the Caballo Blanco gold project and for general working capital and corporate needs. Completion of the investment is subject to TSXV approval.