Agnico-Eagle Mines Limited announces investment in Kootenay Silver Inc.

(All amounts expressed in Canadian dollars unless otherwise noted)

TORONTO, April 23, 2013 /PRNewswire/ – Agnico-Eagle Mines Limited (NYSE: AEM) (TSX: AEM) (“Agnico”) today announced that it has agreed to
subscribe for 6,250,000 units (“Units”) of Kootenay Silver Inc.
(“Kootenay”) in a non-brokered private placement at a price of $0.76
per Unit for total consideration of $4,750,000. Each Unit is comprised
of one common share of Kootenay (a “Common Share”) and one-half of one
common share purchase warrant of Kootenay (each whole common share
purchase warrant, a “Warrant”). Each Warrant entitles the holder to
acquire one Common Share at a price of $1.08 for a period of two years
from the closing date. Closing of the private placement is expected to
occur on or about April 26, 2013.

On closing of the private placement, Agnico will hold 6,250,000 Common
Shares and 3,125,000 Warrants, representing 9.96% of the issued and
outstanding Common Shares on a non-diluted basis and 14.23% of the
Common Shares assuming exercise of the Warrants. The agreement also
provides Agnico with a participation right pursuant to which, during the two-year period from the closing date, and provided that
Agnico at the time continues to hold no less than five percent of the
then issued and outstanding Common Shares (taking into account
convertible securities owned by Agnico), Agnico has the right to participate in certain future equity financings
by Kootenay in order to maintain its pro rata investment in Kootenay.

Agnico is acquiring the Units for investment purposes. Depending on
market conditions, Agnico may, from time to time, acquire additional
securities of Kootenay or dispose of some or all of the Common Shares
or Warrants.

About Agnico

Agnico 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
. Agnico 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.

Forward-Looking Statements

The information in this news release has been prepared as at April 23, 2013. 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
private placement; and Agnico’s ownership of Common Shares and Warrants
following the closing date.

Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by Agnico 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. Except as otherwise required by law, Agnico expressly
disclaims any obligation or undertaking to release publicly any updates
or revisions to any such statements to reflect any change in Agnico’s
expectations or any change in events, conditions or circumstances on
which any such statement is based.

SOURCE Agnico-Eagle Mines Limited

An early warning report will be filed by Agnico in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact:

Investor Relations
Agnico-Eagle Mines Limited
145 King Street East, Suite 400
Toronto, Ontario, M5C 2Y7
Telephone: 416-947-1212
Fax: 416-367-4681

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