(All amounts expressed in Canadian dollars
unless otherwise noted)
TORONTO, Dec. 19, 2016 /CNW/ - Agnico Eagle Mines
Limited (NYSE: AEM, TSX: AEM) ("Agnico Eagle") announced today
that it has agreed to purchase 22,500,000 common shares of Cartier
Resources Inc. (TSX-V: ECR) ("Cartier") in a non-brokered private
placement at a price of $0.20 per
share for total consideration of $4,500,000.
On closing of the transaction, Agnico Eagle will own 22,500,000
common shares of Cartier, representing approximately 19.97% of the
issued and outstanding common shares of Cartier on a non-diluted
basis (after giving effect to the transaction, but otherwise
assuming that the number of issued and outstanding common shares of
Cartier as at the date hereof remains unchanged). Closing of
the transaction is expected to occur on or about December 22, 2016 and is subject to certain
conditions.
In connection with the closing of the transaction, Agnico Eagle
and Cartier will enter into an
investor rights agreement (the "Investor Rights Agreement")
pursuant to which Agnico Eagle will (i) have the right to
participate in certain equity financings by Cartier in order to maintain its 19.97%
interest in Cartier, and (ii) have
the right (which it has no present intention to exercise) to
nominate one person (and in the case of an increase in the size of
the board of directors of Cartier
to 10 or more directors, two persons) to the board of directors of
Cartier. Under the Investor Rights Agreement, Agnico Eagle
will be subject to a two-year standstill which will prohibit Agnico
Eagle from taking certain actions, including acquiring more than
19.99% of the issued and outstanding common shares of Cartier,
subject to certain exceptions.
Agnico Eagle is acquiring the common shares for investment
purposes. Depending on market conditions and other factors,
Agnico Eagle may, from time to time, acquire additional common
shares or other securities of Cartier or dispose of some or all of the
common shares or other securities of Cartier 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:
David Wong
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. Cartier's head office
is located at 1740, chemin Sullivan, Suite 1000, Val-d'Or, Québec J9P 7H1.
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 countries as well as in the United States and Sweden. 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
December 19, 2016. 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 transaction; Agnico Eagle's ownership interest in Cartier upon
closing of the transaction; Agnico Eagle's acquisition or
disposition of securities of Cartier 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.
SOURCE Agnico Eagle Mines Limited