OREANDA-NEWS. May 18, 2015.
Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle") announced today that it has agreed to subscribe for
62,500,000 common shares ("Belo Sun Shares") of
Belo Sun Mining Corp.
(TSX:BSX) ("Belo Sun") in a non-brokered private placement at a price
of
\\$0.24 per
Belo Sun Share for total consideration of \\$15,000,000.
Closing of the private placement is expected to occur on or about May
21, 2015.
On closing of the private placement, Agnico Eagle will hold 62,500,000
Belo Sun Shares, representing approximately 17.38% of the issued and
outstanding Belo Sun Shares on a non-diluted basis. On closing, Agnico
Eagle and Belo Sun 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, provided that Agnico Eagle continues to hold no
less than ten percent of the then issued and outstanding Belo Sun
Shares on a non-diluted basis. The agreement will also provide Agnico
Eagle with a participation right to participate in certain future
equity financings by Belo Sun in order to maintain its pro rata
investment in Belo Sun, provided that Agnico Eagle at the time
continues to hold no less than ten percent of the then issued and
outstanding Belo Sun Shares on a non-diluted basis.
Agnico Eagle also announced today that it has subscribed for an
additional 13,154,243 class "A" common shares ("Pershimco Shares") of
Pershimco Resources Inc. (TSX-V:PRO) ("Pershimco") in a previously
announced brokered private placement at a price of \\$0.17 per Pershimco
Share for total consideration of approximately \\$2,236,221. The private
placement closed today as anticipated. The 13,154,243 Pershimco Shares
subscribed for today represent approximately 4.97% of the issued and
outstanding Pershimco Shares on a non-diluted basis.
Agnico Eagle now holds 52,754,243 Pershimco Shares, representing
approximately 19.93% of the issued and outstanding Pershimco Shares on
a non-diluted basis.
"The new investment in Belo Sun and the purchase of additional common
shares of Pershimco are in line with Agnico Eagle's proven strategy of
making early investments in companies with quality exploration and
development projects in favourable mining jurisdictions", said
Sean
Boyd, Chief Executive Officer of Agnico Eagle.
Agnico Eagle is acquiring the Belo Sun Shares and the Pershimco Shares
for investment purposes. Depending on market conditions, Agnico Eagle
may, from time to time, acquire additional Belo Sun shares or Pershimco
shares or other securities of Belo Sun or Pershimco or dispose of some
or all of the Belo Sun Shares or Pershimco Shares.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced
precious metals since 1957. Its eight mines are located in Canada,
Finland and Mexico, with exploration and development activities in each
of these regions as well as in the United States. The Company and its
shareholders have full exposure to gold prices due to its long-standing
policy of no forward gold sales. Agnico Eagle has declared a cash
dividend every year since 1983.
Forward-Looking Statements
The information in this news release has been prepared as at May 14,
2015. 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 with Belo Sun; and Agnico Eagle's ownership of Belo
Sun Shares and Pershimco Shares 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.
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