TORONTO — Agnico-Eagle Mines plans to raise US$252 million by way of a private placement. The net proceeds are earmarked for mine development and related capital expenditures as well as for general corporate purposes.
The deal will be underwritten by a syndicate led by Macquarie Capital Markets Canada. The offering includes 8.0 million units, each priced at US$31.50. Each unit will consist of one share of Agnico and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of US$47.25 per share any time during the five-year term of the warrant.
Agnico-Eagle’s next new gold mine will be the Pinos Altos project, due for start-up in mid-2009. The deposit contains probable gold reserves of 24.7 million tonnes averaging 3.21 g/t Au and 92.21 g/t Ag, or 2.5 million contained oz of gold. At full production, Pinos Altos should produce about 230,000 oz of gold annually in 2010 and 2011.
Next on the horizon is the Meadowbank gold project in the Nunavut. Production could begin as early as 2010 at a rate of over 400,000 oz/year. The probable reserve at Meadowbank is 29.3 million tonnes grading 3.67 g/t Au, or 3.5 million oz of contained gold.
Visit www.Agnico-Eagle.com to learn more about this company and its successful gold mines.