(All amounts expressed in Canadian dollars unless otherwise noted)
TORONTO, Sept. 14, 2016 /CNW/ - Agnico Eagle Mines Limited (NYSE: AEM,TSX: AEM) ("Agnico Eagle") announced today that, on September 14, 2016, it entered into a support agreement (the "Support Agreement") with Orla Mining Ltd ("Orla"). The Support Agreement requires Agnico Eagle, subject to termination rights, to, among other things, vote all of the common shares (the "Pershimco Shares") of Pershimco Resources Inc. ("Pershimco") owned by Agnico Eagle in favour of the proposed plan of arrangement pursuant to which (i) Orla and Pershimco will amalgamate and (ii) each Pershimco shareholder will receive securities of the amalgamated entity in exchange for the Pershimco Shares owned by such shareholder (the "Arrangement").
Agnico Eagle currently owns 52,754,243 Pershimco Shares, representing approximately 18.6% of the total issued and outstanding Pershimco Shares on a non-diluted basis.
As previously disclosed, Agnico Eagle and Pershimco are party to an investor rights agreement dated January 28, 2014 (the "Investor Rights Agreement") pursuant to which Agnico Eagle was granted director nomination rights with respect to Pershimco's board of directors and the right to participate in certain equity financings by Pershimco in order to maintain its pro rata investment. Agnico Eagle, Pershimco and Orla entered into a waiver and termination agreement dated September 14, 2016 pursuant to which Agnico Eagle has agreed to, among other things, the termination of the Investor Rights Agreement upon completion of the Arrangement.
Agnico Eagle may, from time to time, acquire additional Pershimco Shares or other securities of Pershimco and, if the Support Agreement is terminated, Agnico Eagle may, from time to time, dispose of some or all of the Pershimco Shares or other securities of Pershimco 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
145 King Street East, Suite 400
Toronto, Ontario M5C 2Y7
Agnico Eagle's head office is located at 145 King Street East, Suite 400, Toronto, Ontario M5C 2Y7. Pershimco's head office is located at 11, rue Perreault Est, Rouyn-Noranda, Québec J9X 3C1.
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.
The information in this news release has been prepared as at September 14, 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 "may", "will" or similar terms.
Forward-looking statements in this news release include statements relating to Agnico Eagle's acquisition or disposition of Pershimco Shares or other securities of Pershimco in the future.
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
For further information: 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