Agnico-Eagle Mines Limited reports investment in Forum Uranium Corp. and concurrent option agreement
March 03 2008 - 7:00AM
PR Newswire (US)
Stock Symbol: AEM (NYSE and TSX) TORONTO, March 3
/PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited ("Agnico" or
the "Company") today reported that it had acquired 6,122,449 units
("Units") of Forum Uranium Corp. ("Forum") by way of a private
placement at a price of $0.49 per Unit for a total consideration of
$3,000,000 in cash. Each Unit consisted of one common share
("Common Shares"), resulting in the acquisition of a total of
6,122,449 Common Shares of Forum by the Company, and one-half of
one share purchase warrant ("Warrants"), each full Warrant
entitling the Offeror to acquire one Common Share at a price of
$0.66 per share for a period of two years. The acquisition
represented and Agnico now owns and controls approximately 12.75%
of the outstanding Common Shares of Forum assuming the exercise of
the Warrants acquired by Agnico. The Common Shares and Warrants
were acquired for investment purposes. Agnico may acquire
additional Common Shares or Warrants or dispose of some or all of
the Common Shares or Warrants currently held. Concurrent with this
investment, Forum has optioned the right to earn a 51% interest in
the uranium properties that Agnico acquired as part of the
Cumberland Resources acquisition in 2007 by incurring a total of
$3,000,000 of exploration expenditures on these properties over a
four year period. Forum may also acquire a further 14% interest by
completing a bankable feasibility study in relation to these
properties within five years of earning its 51% joint venture
interest. Agnico purchased the securities pursuant to the
"accredited investor" prospectus exemption provided in National
Instrument 45-106. About Agnico-Eagle Agnico-Eagle is a long
established Canadian gold producer with operations located in
Quebec and exploration and development activities in Canada,
Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine
is Canada's largest gold deposit in terms of reserves. The Company
has full exposure to higher gold prices consistent with its policy
of no forward gold sales. It has paid a cash dividend for 26
consecutive years. DATASOURCE: Agnico-Eagle Mines Limited CONTACT:
David Smith, VP, Investor Relations, (416) 947-1212
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