(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:
David Wong
Agnico Eagle Mines Limited
145 King Street East, Suite 400
Toronto, Ontario M5C 2Y7
Telephone: 416-947-1212
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.
Forward-Looking Statements
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