Agnico Eagle Announces Investment IN Candelaria Mining Corp.
(All amounts expressed in Canadian dollars unless otherwise noted)
AGNICO EAGLE ANNOUNCES INVESTMENT IN
CANDELARIA MINING CORP.
Toronto (September 1, 2021) – Agnico Eagle Mines Limited (NYSE: AEM, TSX: AEM)
("Agnico Eagle") announced today that it has agreed to subscribe for 13,333,333 units
("Units") of Candelaria Mining Corp. (TSX-V: CAND) ("Candelaria") in a non -brokered
private placement at a price of $0.45 per Unit for total consideration of approximately
$6,000,000. Each Unit is comprised of one common share of Candelaria (a "Common
Share") and one-half of one common share purchase warrant of Candelaria (a "Warrant").
Each Warrant entitles the holder to acquire one Common Share at a price of $ 0.65 for a
period of 36 months following the closing date of the private placement . Closing is
expected to occur on September 30, 2021 and is subject to certain conditions.
Agnico Eagle currently owns 10,120,000 Common Shares, representi ng approximately
7.8% of the issued and outstanding Common Shares on a non-diluted basis. On closing
of the private placement , Agnico Eagle will own 23,453,333 Common Shares and
6,666,667 Warrants, representing approximately 15.94% of the issued and outstanding
Common Shares on a non -diluted basis and 19.59% of the issued and outstanding
Common Shares on a partially-diluted basis.
Agnico Eagle and Candelaria entered into an investor rights agreement on June 9, 2017,
which was amended on September 1, 2021 in connection with the private placement ,
pursuant to which Agnico Eagle is entitled to certain rights, provided Agnico Eagle
maintains certain ownership thresholds in Candelaria, including: (i) the right to participate
in equity financings in order to maintain its pro rata ownership in Candelaria at the time
of such financing or acquire up to a 19.99% ownership interest in Candelaria; and (ii) the
right (which Agnico Eagle has no present intention of exercising) to nominate one person
(and in the case of an increase in the size of the board of directors of Candelaria to 10 or
more directors, two persons) to the board of directors of Candelaria.
Agnico Eagle is acquiring the Common Shares and the Warrants for investment
purposes. Depending on market conditions and other factors, Agnico Eagle may, from
time to time, acquire additional Common Shares, common share purchase warrants or
other securities of Candelaria or dispose of some or all of the Common Shares, common
share purchase warrants or other securities of Candelaria that it owns at such time.
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An early warning report will be filed by Agnico Eagle in accordance with applicable
securities laws. To obtain a copy of the early warning report, please contact:
Jean-Marie Clouet
Agnico Eagle Mines Limited
145 King Street East, Suite 400
Toronto, Ontario M5C 2Y7
Telephone: 416-947-1212
Agnico Eagle's head office is located at 145 King Street East, Suite 400, Toronto, Ontario
M5C 2Y7 . Candelaria's head office is located at Suite 1201 – 1166 Alberni Street ,
Vancouver, British Columbia, V6E 3Z3.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious
metals since 1957. Its operating mines are located in Canada, Finland and Mexico, with
exploration and development activities in each of these countries as well as in the United
States, Sweden and Colombia. Agnico Eagle and its shareholders have full exposure to
gold prices due to its long -standing policy of no forward gold sales. Agnico Eagle has
declared a cash dividend every year since 1983.
Forward-Looking Statements
The information in this news release has been prepared as at September 1, 2021. 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 "may", "will" or similar terms.
Forward-looking statements in this news release include, without limitation, statements
relating to the expected closing date of the private placement, Agnico Eagle's ownership
interest in Candelaria upon closing of the private placement, Agnico Eagle 's acquisition
or disposition of securities of Candelaria in the future and the terms of the investor rights
agreement.
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Forward-looking statements are necessarily based upon a number of factors and
assumptions that, while considered reasonable by Agnico Eagle a s 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. Other than as required by law, Agnico
Eagle does not intend, and does not assume any obli gation, to update these forward -
looking statements.