Stock Symbol: AEM (NYSE and TSX)
TORONTO, Dec. 23,
2024 /PRNewswire/ - Agnico Eagle Mines Limited
(NYSE: AEM) (TSX: AEM) ("Agnico Eagle") announced today that
it has completed a transaction with ONGold Resources Ltd. (TSXV:
ONAU) ("ONGold") which resulted in Agnico Eagle acquiring 8,700,000
common shares ("Common Shares") of ONGold.
On November 25, 2024, Yamana Gold
Ontario Inc. ("Yamana"), a wholly-owned subsidiary of Agnico Eagle,
and 10215825 Manitoba Ltd. (the "Buyer"), a wholly-owned subsidiary
of ONGold, entered into an asset purchase agreement, pursuant to
which the Buyer agreed to purchase certain assets from Yamana in
exchange for, among other things, the issuance of Common Shares to
Agnico Eagle (the "Transaction"). On December 20, 2024, the Transaction was completed,
which resulted in Agnico Eagle acquiring 8,700,000 Common
Shares.
Agnico Eagle currently owns 8,700,000 Common Shares,
representing approximately 15.0% of the issued and outstanding
Common Shares on a non-diluted basis. Prior to the closing of the
Transaction, Agnico Eagle did not own any Common Shares.
In connection with closing of the Transaction, Agnico Eagle and
ONGold entered into an investor rights agreement pursuant to which
ONGold granted Agnico Eagle certain rights, provided that Agnico
Eagle maintains certain ownership thresholds in ONGold, including:
(a) the right to participate in equity financings and top-up its
holdings in relation to dilutive issuances in order to maintain its
pro rata ownership interest in ONGold at the time of such financing
or acquire up to a 19.99% ownership interest in ONGold; and (b) 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 ONGold to eight or more directors, two
persons) to the board of directors of ONGold.
Agnico Eagle acquired the Common Shares as consideration for the
sale of certain assets in connection with the Transaction. Agnico
Eagle may, from time to time, acquire additional Common Shares or
other securities of ONGold or dispose of some or all of the Common
Shares or other securities of ONGold that it owns at such time.
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:
Agnico Eagle Mines Limited
c/o Investor Relations
145 King Street East, Suite 400
Toronto, Ontario M5C 2Y7
Telephone: 416-947-1212
Email: investor.relations@agnicoeagle.com
Agnico Eagle's head office is located at 145 King Street East,
Suite 400, Toronto, Ontario M5C
2Y7. ONGold's head office is located at 120 Adelaide Street West,
Suite 1410, Toronto, Ontario M5H
1T1.
About Agnico Eagle
Agnico Eagle is a Canadian based and led senior gold mining
company and the third largest gold producer in the world, producing
precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of high-quality
exploration and development projects in these countries as well as
in the United States. Agnico Eagle
is a partner of choice within the mining industry, recognized
globally for its leading environmental, social and governance
practices. Agnico Eagle was founded in 1957 and has consistently
created value for its shareholders, declaring a cash dividend every
year since 1983.
Forward-Looking Statements
The information in this news release has been prepared as at
December 23, 2024. 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, Agnico Eagle's acquisition or disposition of securities
of ONGold in the future.
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 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 obligation, to update these forward-looking statements.
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SOURCE Agnico Eagle Mines Limited
