MONTREAL, April 7 /CNW Telbec/ - Société générale de financement du Québec (SGF) announces today the approval of a USD20 million loan to Agnico-Eagle Mines Limited, Québec's largest active mining company. This transaction is confirmed as a 7-year unsecured term note, with a 6.13% interest rate.
Agnico-Eagle Mines is an international gold mining company with a strong growth potential, which extends its activities across Canada, Finland, Mexico and the United States. "We are pleased to support Québec's foremost gold extraction and production mining company, says Mr. Pierre Shedleur, President and General Manager of SGF. This type of partnership enables the development and execution of mining projects that have a substantial impact on Québec's economy."
As a result, SGF is participating in a project that will provide jobs for over 2,000 people working across three Québec-based plants, as well as in the Meadowbank mine in Nunavut, and consolidate 700 related jobs among the company's Québec suppliers, thereby yielding an annual payroll totaling nearly $190 million.
According to recent data, about 400 gold mines are currently active around the globe. Today, the world's total gold mining output is relatively stable, having achieved an average of 2,525 tons annually over the past 5 years. Agnico-Eagle's facilities will produce 1.2 million ounces of gold in 2010, representing a 139% increase compared to 2009 production levels.
Société générale de financement du Québec (sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Québec government. As part of its new mandate, SGF is authorized by the Québec government to go beyond its traditional role as an equity investor by offering complementary solutions, such as loans, debentures or preferred capital-share investments.
SOURCE SOCIETE GENERALE DE FINANCEMENT DU QUEBEC
For further information: For further information: Sophie Alarie, Senior Advisor, Communications and Media Relations, (514) 876-9368