(All amounts expressed in Canadian
dollars unless otherwise noted)
TORONTO, Sept. 1, 2021 /CNW/ - Agnico Eagle Mines
Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle") announced
today that it has agreed to subscribe for 13,333,333 units
("Units") of Candelaria Mining Corp. (TSX-V: CAND)
("Candelaria") in a non-brokered private placement at a price of
$0.45 per Unit for total
consideration of approximately $6,000,000. Each Unit is comprised of one common
share of Candelaria (a "Common
Share") and one-half of one common share purchase warrant of
Candelaria (a "Warrant"). Each
Warrant entitles the holder to acquire one Common Share at a price
of $0.65 for a period of 36 months
following the closing date of the private placement. Closing is
expected to occur on September 30,
2021 and is subject to certain conditions.
Agnico Eagle currently owns 10,120,000 Common Shares,
representing approximately 7.8% of the issued and outstanding
Common Shares on a non-diluted basis. On closing of the
private placement, Agnico Eagle will own 23,453,333 Common Shares
and 6,666,667 Warrants, representing approximately 15.94% of
the issued and outstanding Common Shares on a non-diluted basis
and 19.59% of the issued and outstanding Common Shares on a
partially-diluted basis.
Agnico Eagle and Candelaria
entered into an investor rights agreement on June 9, 2017, which was amended on September 1, 2021 in connection with the private
placement, pursuant to which Agnico Eagle is entitled to certain
rights, provided Agnico Eagle maintains certain ownership
thresholds in Candelaria,
including: (i) the right to participate in equity financings in
order to maintain its pro rata ownership in Candelaria at the time of such financing or
acquire up to a 19.99% ownership interest in Candelaria; and (ii)
the right (which Agnico Eagle has no present intention of
exercising) 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.
Agnico Eagle is acquiring the Common Shares and the Warrants for
investment purposes. Depending on market conditions and other
factors, Agnico Eagle may, from time to time, acquire additional
Common Shares, common share purchase warrants or other securities
of Candelaria or dispose of some
or all of the Common Shares, common share purchase warrants or
other securities of Candelaria
that it owns at such time.
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:
Jean-Marie Clouet
Agnico Eagle Mines Limited
145 King Street East, Suite 400
Toronto, Ontario M5C 2Y7
Telephone: 416-947-1212
Agnico Eagle's head office is located at 145 King Street East,
Suite 400, Toronto, Ontario M5C
2Y7. Candelaria's head office is
located at Suite 1201 – 1166 Alberni Street, Vancouver, British Columbia, V6E 3Z3.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has
produced precious metals since 1957. Its operating mines are
located in Canada, Finland and Mexico, with exploration and development
activities in each of these countries as well as in the United States, Sweden and Colombia. Agnico Eagle 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
September 1, 2021. 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 "may", "will" or similar
terms.
Forward-looking statements in this news release include, without
limitation, statements relating to the expected closing date of the
private placement, Agnico Eagle's ownership interest in Candelaria
upon closing of the private placement, Agnico Eagle's acquisition
or disposition of securities of Candelaria in the future and the terms of the
investor rights agreement.
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. Other than as
required by law, Agnico Eagle does not intend, and does not assume
any obligation, to update these forward-looking statements.
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SOURCE Agnico Eagle Mines Limited