Stock Symbol: AEM (NYSE and TSX)
TORONTO, Oct. 25,
2024 /PRNewswire/ - Agnico Eagle Mines Limited
(NYSE: AEM) (TSX: AEM) ("Agnico Eagle") announced today that
it has agreed to subscribe for 33,869,939 units ("Units") of ATEX
Resources Inc. (TSXV: ATX) ("ATEX") in a non-brokered private
placement at a price of C$1.63 per
Unit for total consideration of US$40,000,000 (approximately C$55,208,000). Each Unit is comprised of one
common share of ATEX (a "Common Share") and one-half of one common
share purchase warrant of ATEX (each whole common share purchase
warrant, a "Warrant"). Each Warrant entitles the holder to acquire
one Common Share at a price of C$2.50
for a period of five years following the closing date of the
private placement, subject to acceleration in certain
circumstances. Closing is expected to occur on or about
October 30, 2024 and is subject to
certain conditions.
The investment in ATEX is consistent with Agnico Eagle's
historical practice of strategic equity investments in projects
with high geological potential. It provides Agnico Eagle with
exposure to an early stage, copper-gold exploration project in
Chile, an established mining
jurisdiction. The Company continues to focus on its portfolio of
high-quality internal growth projects, and complements its pipeline
of projects with a strategy of acquiring strategic toehold
positions in prospective opportunities.
Agnico Eagle does not currently own any Common Shares or
Warrants. On closing of the private placement, and after giving
effect to two other share issuance transactions to be completed by
ATEX concurrently with the private placement, Agnico Eagle will own
33,869,939 Common Shares and 16,934,969 Warrants, representing
approximately 13.21% of the issued and outstanding Common Shares on
a non-diluted basis and approximately 18.59% of the Common Shares
on a partially-diluted basis, assuming exercise of the Warrants
held by Agnico Eagle.
On the closing of the private placement, Agnico Eagle and ATEX
will enter into an investor rights agreement, pursuant to which
Agnico Eagle will be granted certain rights, provided Agnico Eagle
maintains certain ownership thresholds in ATEX, 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 in ATEX at the time of such financing
or acquire up to a 19.99% ownership interest, on a
partially-diluted basis, in ATEX; 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 ATEX to ten or more directors, two persons) to the
board of directors of ATEX.
Agnico Eagle is acquiring the Common Shares and 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 ATEX or dispose of some or all of the Common Shares, Warrants or
other securities of ATEX 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. ATEX's head office is located at 50 Richmond Street East,
Toronto, Ontario M5C
1N7.
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
October 25, 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 ATEX upon closing
of the private placement, Agnico Eagle's acquisition or disposition
of securities of ATEX 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