Stock Symbol: AEM (NYSE and TSX)
TORONTO, May 28, 2014 /CNW/ - Agnico Eagle Mines Limited (NYSE: AEM, TSX:AEM) ("Agnico Eagle" or the "Company") announced today that it has entered
into an agreement (the "Purchase Agreement") to sell 26,966,292 common
shares (the "Purchased Shares") of Sulliden Gold Corporation Ltd.
("Sulliden") to Rio Alto Mining Limited ("Rio Alto") for cash
consideration of C$1.10 per Purchased Share. The Purchased Shares
represent approximately 8.6% of the issued and outstanding common
shares of Sulliden (the "Shares"). Upon the closing of the
transaction, which is expected to occur on May 29, 2014, Agnico Eagle
will hold no Shares.
Agnico Eagle also holds warrants to purchase 18,876,404 Shares at an
exercise price of C$1.31 per Share exercisable on or before April 12,
2015, which represents approximately 5.7% of the issued and outstanding
Shares, assuming the exercise of the warrants. Agnico Eagle disposed of
the Purchased Shares in the ordinary course of business as they were a
non-core asset of Agnico Eagle.
"The sale of our Sulliden common shares to Rio Alto for approximately
C$29.7 million allows Agnico Eagle to realize a profit on our original
investment while reallocating cash for other strategic uses. Our
intention is to convert our 18.9 million Sulliden warrants into Rio
Alto warrants under the proposed transaction", said Sean Boyd,
President and Chief Executive Officer of the Company. "We believe the
proposed combination of Rio Alto's operations in Peru with Sulliden's
nearby Shahuindo project makes very good business sense given Rio
Alto's high quality mine building skills", added Mr. Boyd.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced
precious metals since 1957. Its seven 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. The Company and
its shareholders have full exposure to higher gold prices due to its
long-standing policy of no forward gold sales. Agnico Eagle has
declared a cash dividend every year since 1983. Agnico Eagle's head
office is located at 145 King Street East, Suite 400, Toronto, Ontario,
The information in this news release has been prepared as of May 28,
2014. Certain statements contained in this news release 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 and are referred to herein as "forward-looking statements". When
used in this document, words such as "expected", "will" and similar
expressions are intended to identify forward-looking statements or
Such statements and information include, without limitation, statements
relating to the date of closing of the sale of the Purchased Shares and
Agnico Eagle's ownership of Shares and warrants to purchase Shares
following that date. The material factors and assumptions used in the
preparation of forward-looking statements contained herein, which may
prove to be incorrect include, but are not limited to, that the
purchase and sale of the Purchased Shares will occur in accordance with
and on the timing currently contemplated by Agnico Eagle.
These forward-looking statements are subject to numerous risks,
uncertainties and assumptions, certain of which are beyond the control
of Agnico Eagle. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise except as required by
applicable securities laws.
SOURCE: Agnico Eagle Mines Limited
For further information:
For further information regarding Agnico Eagle, contact Investor Relations at email@example.com or call (416) 947-1212.
To obtain a copy of the early warning report filed by Agnico Eagle with the Canadian securities regulatory authorities relating to the sale of the Shares, contact David Wong, Manager, Investor Relations at (416) 947-1212.