Press release from CNW Group
Agnico-Eagle Mines Limited announces investment in Sulliden Gold Corporation Ltd.
Tuesday, April 09, 2013
Agnico-Eagle Mines Limited announces investment in Sulliden Gold Corporation Ltd.08:00 EDT Tuesday, April 09, 2013
(All amounts expressed in Canadian dollars unless otherwise noted)
TORONTO, April 9, 2013 /CNW/ - Agnico-Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico") today announced that it has agreed to subscribe for 26,966,292 units ("Units") of Sulliden Gold Corporation Ltd. ("Sulliden") in a non-brokered private placement at a price of $0.89 per Unit for total consideration of $24,000,000. Each Unit is comprised of one common share of Sulliden (a "Common Share") and 0.7 of one common share purchase warrant of Sulliden (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at a price of $1.31 for a period of two years from the closing date. Closing of the private placement is expected to occur on or about April 12, 2013.
On closing of the private placement, Agnico will hold 26,966,292 Common Shares and 18,876,404 Warrants, representing 9.96% of the issued and outstanding Common Shares on a non-diluted basis and 15.83% of the Common Shares on a partially diluted basis. The agreement also provides Agnico with a participation right pursuant to which, during the two-year period from the closing date, and provided that Agnico at the time continues to hold no less than five percent of the then issued and outstanding Common Shares, Agnico has the right to participate in certain future equity financings by Sulliden in order to maintain its pro rata investment in Sulliden.
Agnico is acquiring the Units for investment purposes. Depending on market conditions, Agnico may, from time to time, acquire additional Common Shares or other securities of Sulliden or dispose of some or all of the Common Shares or Warrants.
Agnico 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 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.agnico-eagle.com
The information in this news release has been prepared as at April 9, 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'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 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 expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Agnico's expectations or any change in events, conditions or circumstances on which any such statement is based.
SOURCE: Agnico-Eagle Mines Limited
For further information:
An early warning report will be filed by Agnico in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact:
Agnico-Eagle Mines Limited
145 King Street East, Suite 400
Toronto, Ontario, M5C 2Y7