Agnico-Eagle Mines (TSX: T.AEM, Stock Forum) Tuesday said it has agreed to subscribe for 6,250,000 units of Kootenay Silver (TSX: V.KTN, Stock Forum) in a non-brokered private placement at a price of 76 cents per unit for total consideration of $4.75 million, this according to a company news release.
Each unit is comprised of one common share of Kootenay and one-half of one common share purchase warrant of Kootenay, which allows Agnico-Eagle to acquire one common share at a price of $1.08 for a period of two years from the closing date.
As a result of the private placement, Agnico will hold 9.96% of Kootenay’s issued and outstanding common stock on a non-diluted basis and 14.23% assuming the exercise of the warrants.