(All amounts expressed in Canadian
dollars unless otherwise noted)
TORONTO, Dec. 5, 2016 /CNW/ - Agnico Eagle Mines
Limited (NYSE: AEM, TSX: AEM) ("Agnico Eagle") announced today
that it has entered into a share purchase agreement with G4G
Capital Corp. (TSX-V: GCC), which is proposed to be renamed White
Gold Corp. (the "Issuer"), pursuant to which Agnico Eagle has
agreed to purchase from the Issuer on a private placement basis
(the "Transaction") such number of common shares of the Issuer (the
"Common Shares") equal to 19.93% of the total issued and
outstanding Common Shares on a non-diluted basis as at the closing
of the Transaction (after giving effect to the Transaction and
other permitted treasury issuances of Common Shares that occur
prior to, or concurrently with, the closing of the Transaction).
Agnico Eagle will pay $1.20 per
Common Share. Closing of the Transaction is expected to occur
on or about December 13, 2016 and is
subject to certain conditions.
On closing of the Transaction, Agnico Eagle and the Issuer will
enter into an investor rights agreement (the "Investor Rights
Agreement) pursuant to which Agnico Eagle will (i) have the
right to participate in certain equity financings by the Issuer in
order to maintain its 19.93% interest in the Issuer, and (ii) have
the right (which it has no present intention to exercise) to
nominate one person (and in the case of an increase in the size of
the board of directors of the Issuer to 10 or more directors, two
persons) to the board of directors of the Issuer. The Investor
Rights Agreement will provide the Issuer with the right to
designate a purchaser in the event that Agnico Eagle wishes to sell
more than 5% of its Common Shares. Under the Investor Rights
Agreement, Agnico Eagle will be subject to a two-year standstill
which will prohibit Agnico Eagle from taking certain actions,
including acquiring more than 19.99% of the issued and outstanding
Common Shares, subject to certain exceptions.
The Issuer has an option to acquire 12,301 claims across 21
properties covering approximately 249,000 hectares and representing
approximately 30% of the White Gold District in the Yukon Territory from Wildwood Exploration Inc.
and Shawn Ryan, the Chief Technical
Advisor of the Issuer ("Mr. Ryan").
Mr. Ryan, along with GroundTruth Exploration Inc.
("GroundTruth"), have a history of success with exploration
activities in the Yukon Territory.
Agnico Eagle expects the Issuer to leverage the unique experience
and innovative techniques employed by Mr. Ryan and GroundTruth to
advance the Issuer's current portfolio of projects in the
Yukon Territory.
Agnico Eagle is acquiring Common Shares pursuant to the
Transaction for investment purposes. Depending on market
conditions and other factors, Agnico Eagle may, from time to time,
acquire additional Common Shares or other securities of the Issuer
or dispose of some or all of the Common Shares or other securities
of the Issuer 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. White Gold's head office is located at 409 Granville Street,
Suite 1001, Vancouver, British
Columbia V6C 1T2.
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
December 5, 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 "expected", "may", "will" or similar terms.
Forward-looking statements in this news release include, but are
not limited to: statements relating to the expected closing date of
the Transaction; Agnico Eagle's ownership interest in the Issuer
upon closing of the Transaction; Agnico Eagle's acquisition or
disposition of securities of the Issuer 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.
SOURCE Agnico Eagle Mines Limited