Stock Symbol: AEM (NYSE and TSX)
TORONTO, July 15,
2024 /CNW/ - Agnico Eagle Mines Limited
(NYSE: AEM) (TSX: AEM) ("Agnico Eagle") announced today that
it has entered into a transaction with First Nordic Metals Corp.
(TSX-V: FNM) ("FNM") that will result in Agnico Eagle acquiring
27,954,872 common shares ("Common Shares") of FNM.
Agnico Eagle has agreed to exchange amounts that remain due
under the asset purchase agreement between certain subsidiaries of
Agnico Eagle, certain subsidiaries of FNM and EMX Royalty
Corporation dated March 19, 2021, as
amended May 1, 2023 (the "Purchase
Agreement") for 27,954,872 Common Shares (the "Transaction"). The
Transaction is being effected by way of a subscription agreement
between FNM and Agnico Eagle, whereby Agnico Eagle has agreed to
subscribe for 27,954,872 Common Shares at a price of $0.2925 per Common Share for total consideration
of approximately $8,176,800
(the "Consideration") in a non-brokered private placement,
which is expected to close on or about July
22, 2024.
On closing of the Transaction, the Consideration will be
immediately directed by FNM to its wholly-owned subsidiary Gold
Line Resources Ltd. ("Gold Line"), and Gold Line will further
direct the Consideration to Agnico Eagle Finland Oy and Agnico
Eagle Sweden AB, each a wholly-owned subsidiary of Agnico Eagle, in
satisfaction of payments that remain owing by Gold Line under the
Purchase Agreement.
Agnico Eagle currently owns 1,458,294 Common Shares,
representing approximately 0.75% of the issued and outstanding
Common Shares on a non-diluted basis. On closing of the
Transaction, Agnico Eagle will own 29,413,166 Common Shares,
representing approximately 13.25% of the issued and outstanding
Common Shares on a non-diluted basis.
On closing of the Transaction, Agnico Eagle and FNM will enter
into an investor rights agreement pursuant to which Agnico Eagle
will be granted certain rights, provided that Agnico Eagle
maintains certain ownership thresholds in FNM, including: (a) the
right to participate in equity financings and top-up its holdings
in relation to dilutive issuances in order to maintain its pro
rata ownership interest in FNM at the time of such financing or
acquire up to a 19.99% ownership interest in FNM; and (b) 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 FNM to eight or more directors, two
persons) to the board of directors of FNM.
Agnico Eagle is acquiring the Common Shares to settle the
amounts that remain due under the Purchase Agreement. Depending on
market conditions and other factors, Agnico Eagle may, from time to
time, acquire additional Common Shares or other securities of FNM
or dispose of some or all of the Common Shares or other securities
of FNM 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:
Agnico Eagle Mines Limited
c/o Investor Relations
145 King Street East, Suite 400
Toronto, Ontario M5C 2Y7
Telephone: 416-947-1212
Email: investor.relations@agnicoeagle.com
Agnico Eagle's head office is located at 145 King Street East,
Suite 400, Toronto, Ontario M5C
2Y7. FNM's head office is located at 1055 West Hastings Street,
Suite 300, Vancouver, British
Columbia V6E 2E9.
About Agnico Eagle
Agnico Eagle is a Canadian based and led senior gold mining
company and the third largest gold producer in the world, producing
precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of high-quality
exploration and development projects in these countries as well as
in the United States. Agnico Eagle
is a partner of choice within the mining industry, recognized
globally for its leading environmental, social and governance
practices. Agnico Eagle was founded in 1957 and has consistently
created value for its shareholders, declaring a cash dividend every
year since 1983.
Forward-Looking Statements
The information in this news release has been prepared as at
July 15, 2024. 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
Transaction, Agnico Eagle's ownership interest in FNM upon closing
of the Transaction, Agnico Eagle's acquisition or disposition of
securities of FNM 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