(All amounts expressed in Canadian dollars unless otherwise
noted)
TORONTO, May 14, 2015 /CNW/ - 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.
SOURCE Agnico Eagle Mines Limited