Agnico Eagle Announces Investment IN Goldquest Mining Corp.
(All amounts expressed in Canadian dollars unless otherwise noted)
AGNICO EAGLE ANNOUNCES INVESTMENT IN GOLDQUEST MINING CORP.
Toronto (March 6, 2017) – Agnico Eagle Mines Limited (NYSE: AEM, TSX: AEM)
("Agnico Eagle") announced today that it has agreed to pur chase 38,100,000 common
shares of GoldQuest Mining Corp. (TSX-V: GQC) ("GoldQuest") in a non-brokered
private placement at a price of $0.60 per share for total consideration of $22,860,000.
On closing of the transaction, Agnico Ea gle will own 38,100,000 common shares of
GoldQuest, representing approximately 15. 0% of the issued and outstanding common
shares of GoldQuest on a non-diluted basis (a fter giving effect to the transaction, but
otherwise assuming that t he number of issued and outst anding common shares of
GoldQuest as at the date hereof remains unchanged). Closing of the transaction is
expected to occur on or about March 8, 2017 and is subject to certain conditions,
including approval of the TSX Venture Exchange.
In connection with the closing of the transac tion, Agnico Eagle and GoldQuest will enter
into an investor rights agreemen t pursuant to which Agnico Eagle will, provided Agnico
Eagle owns at least a 10% in terest in GoldQuest (calcula ted in accordance with the
investor rights agreement), ha ve the right to participate in equity financings by
GoldQuest in order to maintain its pro rata ownership in GoldQuest at the time of any
such financing or acquire up to a 15.0% ow nership interest in Go ldQuest (after giving
effect to any such financing), and the right (which it has no present intention to exercise)
to nominate one person (and in t he case of an increase in the size of the board of
directors of GoldQuest to 10 or more director s, two persons) to the board of directors of
GoldQuest. Under the investor rights agreemen t, Agnico Eagle will be subject to a two-
year standstill which will prohibit Agnico E agle from taking certain actions, including
acquiring more than 19.99% of the i ssued and outstanding common shares of
GoldQuest, subject to certain exceptions.
“This investment is consistent with our approach of positioning ourselves in early-staged
opportunities in districts with long term geological potential. We look forward to working
with the GoldQuest team as they advance the Romero Project and test key regional
exploration targets along the Tireo land positi on", said Sean Boyd, Agnico Eagle's Vice-
Chairman and Chief Executive Officer.
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Agnico Eagle is acqu iring the common shares for inve stment purposes. Depending on
market conditions and other factors, Agnico Eagle may, from time to time, subject to the
investor rights agreement, ac quire additional common shares or other securities of
GoldQuest or dispose of some or all of the common shares or other securities of
GoldQuest that it owns at such time.
An early warning report will be filed by Ag nico Eagle in accordance with applicable
securities laws. To obtain a copy of the early warning report, please contact:
David Wong
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. GoldQuest's head office is located at 1140 West Pender Street,
Suite 1240, Vancouver, British Columbia V6E 4G1.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious
metals since 1957. Its eight mines are lo cated in Canada, Finland and Mexico, with
exploration and development activi ties in each of these countries as well as in the
United States and Sweden. Agnico Eagle and its shareholders have full exposure to
gold prices due to its long-st anding 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 b een prepared as at March 6, 2017. Certain
statements in this news release, referred to herein as "forward -looking statements",
constitute "forward-looking statements" withi n the meaning of the Un ited States Private
Securities Litigation Reform Act of 1995 and "forward-looking information" under the
provisions of Canadian provincial securiti es laws. These statem ents can be identified
by the use of words such as "expected", "may", "will" or similar terms.
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Forward-looking statements in this news release inclu de, but are not limited to:
statements relating to the expected closing date of the transaction; Agnico Eagle's
ownership interest in GoldQuest upon clos ing of the transaction; Agnico Eagle's
acquisition or disposition of se curities of GoldQuest in the future; and the terms of the
investor rights agreement.
Forward-looking statements are necessarily based upon a number of factors and
assumptions that, while considered reasonable by Agnico Eagle as of the date of such
statements, are inherently subject to signi ficant 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 in tend, and does not assume any obligation, to
update these forward-looking statements.