Agnico Eagle Completes Acquisition of Urastar

TORONTO, May 16, 2013 /PRNewswire/ – Agnico Eagle Mines Limited (NYSE: AEM &
TSX: AEM) (“Agnico Eagle“) and Urastar Gold Corp. (TSX-V: URS, FSE: 3U3 & OTCQX: URNRF) (“Urastar“) jointly announce the completion of the acquisition of Urastar by
Agnico Eagle. Agnico Eagle acquired all of the issued and outstanding
common shares of Urastar (the “Common Shares“) pursuant to a court-approved plan of arrangement under the Business Corporations Act (British Columbia) (the “Arrangement“) involving Urastar, Agnico Eagle, holders of Common Shares (“Shareholders“) of Urastar, holders of Common Share purchase warrants (“Warrants“) of Urastar (“Warrantholders“) and holders of options (“Options“) of Urastar (“Optionholders” and together with the Shareholders and the Warrantholders, the “Securityholders“). Urastar is now a wholly-owned subsidiary of Agnico Eagle.

The Arrangement was approved at a special meeting held on May 14, 2013
by 99.76% of the Securityholders, voting together as a single class,
and by 99.64% of the Shareholders after excluding votes required to be
excluded in accordance with Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions. Final approval for the Arrangement was obtained from the Supreme Court
of British Columbia on May 15, 2013.

Under the terms of the Arrangement, each Shareholder will receive in
exchange for each Common Share held, C$0.25 in cash. Holders of
in-the-money Warrants that have not otherwise exercised their
in-the-money-Warrants will receive C$0.15 in cash for each
in-the-money-Warrant held. Out-of-the-money Warrants and Options will
be cancelled as part of the Arrangement. Registered Shareholders and
in-the-money Warrantholders should follow the instructions contained in
Urastar’s management information circular dated April 8, 2013 (“Circular“) in order to receive the consideration to which they are entitled
pursuant to the Arrangement.

Agnico Eagle intends to cause Urastar to take the necessary steps to
delist the Common Shares from the TSX Venture Exchange (“TSX-V“) and to cause Urastar to apply to the relevant securities commissions
for Urastar to cease to be a reporting issuer under Canadian securities
laws.

For further details regarding the Arrangement, please refer to the
Circular, a copy of which is available under Urastar’s profile on the
System for Electronic Document Analysis and Retrieval at www.sedar.com.

About Agnico Eagle

Agnico Eagle is a long established, Canadian headquartered, gold
producer with operations located in Canada, Finland and Mexico, and
exploration and development activities in Canada, Finland, Mexico and
the United States. Agnico Eagle has full exposure to higher gold prices
consistent with its policy of no forward gold sales. It has declared a
cash dividend for 31 consecutive years. www.agnicoeagle.com

About Urastar

Urastar is junior mining company that has been exploring former gold
producing areas in the state of Sonora, Mexico.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this new
release.

Forward-looking statements

The information in this news release has been prepared as at May 16,
2013
.
Certain statements contained in this news release 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 and are referred to herein as “forward-looking statements”. When
used in this document, words such as “will”, “expects” and “intends”
and similar expressions are intended to identify forward-looking
statements or information.

Such statements and information include, without limitation, statements
relating to Agnico Eagle’s intention to cause Urastar to take the
necessary steps to delist the Common Shares from the TSX-V and to apply
to the relevant securities commissions for Urastar to cease to be a
reporting issuer.

These forward-looking statements are subject to numerous risks,
uncertainties and assumptions, certain of which are beyond the control
of Agnico Eagle. Agnico Eagle disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise except as required by
applicable securities laws.

SOURCE Agnico Eagle Mines Limited

regarding Agnico Eagle:
Investor Relations
145 King Street East, Suite 400
Toronto, ON M5C2Y7
(416) 947-1212

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