(All amounts expressed in Canadian dollars)
Stock Symbol: AEM (NYSE and TSX)
TORONTO, Dec. 20, 2013 /CNW/ - Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle") today announced that it has agreed to subscribe for
19,800,000 units ("Units") of Pershimco Resources Inc. ("Pershimco") in
a private placement at a price of C$0.47 per Unit for total
consideration of C$9,306,000. Each Unit is comprised of one common
share of Pershimco ("Common Share") and one common share purchase
warrant of Pershimco ("Warrant"). Each Warrant entitles the holder to
acquire at any time one Common Share at a price of C$0.54 for a period
of two years from the closing date. The closing of the private
placement is subject to the satisfactory completion of due diligence,
regulatory approval and other conditions and is scheduled to occur on
or about January 10, 2014.
The number of Common Shares to be purchased by Agnico Eagle is premised
on the exercise by The Sentient Group of participation rights to
acquire, prior to or contemporaneously with the closing of the private
placement, 4,027,005 Units. On closing of the private placement,
Agnico Eagle will hold 19,800,000 Common Shares and 19,800,000
Warrants, representing 9.9% of the issued and outstanding Common Shares
on a non-diluted basis and 18.1% of the Common Shares on a partially
diluted basis. On closing, the parties will enter into an investor
rights agreement under which Agnico Eagle will have the right to
appoint one director and, if the board is increased to ten or more
directors, to appoint one additional director. The agreement will also
provide Agnico Eagle with a participation right to participate in
future equity financings by Pershimco in order to maintain its
proportionate ownership of Pershimco at 9.9% on a non-diluted basis.
Agnico Eagle will not be entitled to exercise its participation right
at any time when it owns more than 20% of the outstanding Common Shares
(on a non-diluted basis). Agnico Eagle will also agree not to exercise
a Warrant if and to the extent that, after giving effect to the
exercise, Agnico Eagle would own more than 20% of the outstanding
Common Shares (on a non-diluted basis). Agnico Eagle will also agree
for a period of one year from the closing of the private placement not
to acquire more than 19.99% of the Common Shares (on a fully diluted
basis) or to act jointly or in concert with others in relation to the
securities of Pershimco.
Agnico Eagle is acquiring the Units for investment purposes. Depending
on market conditions, Agnico Eagle may, from time to time, acquire
additional Common Shares or other securities of Pershimco or dispose of
some or all of the Common Shares or Warrants.
An early warning report will be filed by Agnico Eagle in accordance with
applicable securities laws. To obtain a copy of the early warning
report, please contact:
Investor Relations
Agnico Eagle Mines Limited
145 King Street East, Suite 400
Toronto, Ontario, M5C 2Y7
Telephone: 416-947-1212
Fax: 416-367-4681
About Agnico Eagle
Agnico Eagle is a long established, Canadian headquartered, gold
producer with operations located in Canada, Finland and Mexico, and
exploration and development activities in Canada, Finland, Mexico and
the United States. Agnico Eagle has full exposure to higher gold
prices consistent with its policy of no forward gold sales. It has
declared a cash dividend for 31 consecutive years. www.agnicoeagle.com
Forward-Looking Statements
The information in this news release has been prepared as at December 19, 2013. Certain statements in this news release, referred to herein as
"forward-looking statements", constitute "forward-looking statements"
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" under the
provisions of Canadian provincial securities laws. These statements
can be identified by the use of words such as "expected", "may", "will"
or similar terms.
Forward-looking statements in this news release include, but are not
limited to: statements relating to the expected closing date of the
private placement; and Agnico Eagle's ownership of Common Shares and
Warrants following the closing date.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by Agnico
Eagle as of the date of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Many factors, known and unknown, could cause actual
results to be materially different from those expressed or implied by
such forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date made. Except as otherwise required by law, Agnico Eagle
expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any such statements to reflect any change
in Agnico Eagle's expectations or any change in events, conditions or
circumstances on which any such statement is based.
SOURCE Agnico Eagle Mines Limited
