CADILLAC, Quebec AGNICO-EAGLE MINES has signed an agreement to purchase 100% interest in the former Bousquet gold mining complex from BARRICK GOLD. The Bousquet property is adjacent to Agnico-Eagle's LaRonde mine, built on Canada's largest gold deposit. Mining ceased at Bousquet in December 2002.
For $5 million in cash and $2 million in Agnico stock, the deal includes the property, underground rolling stock, the Bousquet No.2 headframe, and specified reclamation obligations. Barrick will retain a 2% net smelter return royalty. The agreement also increases Agnico-Eagle's interest in the Bruce property one mile east of the LaRonde mine to 100%.
Agnico-Eagle has amassed an enviable land position in the area. "With this transaction, we now control 100% of over 14 miles of contiguous favourable geology along the prolific Cadillac-Bousquet Gold Belt and have the dominant land position on the Cadillac-Larder Lake Break immediately to the south," said Sean Boyd, president and CEO. "The first priority will be to integrate the 25 years of Bousquet geological information into the LaRonde mine database. This information and the underground access provided by the Penna and Bousquet No.2 shafts will allow us to better evaluate our regional exploration and development options," he added.
The deal with Barrick is expected to close by Sept. 30, 2003, subject to the customary regulatory approvals.
The Agnico-Eagle web site can be found at www.agnico-eagle.com.