(All amounts expressed in Canadian dollars unless otherwise noted)
TORONTO, April 23, 2013 /PRNewswire/ - Agnico-Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico") today announced that it has agreed to subscribe for 6,250,000 units ("Units") of Kootenay Silver Inc. ("Kootenay") in a non-brokered private placement at a price of $0.76 per Unit for total consideration of $4,750,000. Each Unit is comprised of one common share of Kootenay (a "Common Share") and one-half of one common share purchase warrant of Kootenay (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at a price of $1.08 for a period of two years from the closing date. Closing of the private placement is expected to occur on or about April 26 , 2013.
On closing of the private placement, Agnico will hold 6,250,000 Common Shares and 3,125,000 Warrants, representing 9.96% of the issued and outstanding Common Shares on a non-diluted basis and 14.23% of the Common Shares assuming exercise of the Warrants. The agreement also provides Agnico with a participation right pursuant to which , during the two-year period from the closing date, and provided that Agnico at the time continues to hold no less than five percent of the then issued and outstanding Common Shares (taking into account convertible securities owned by Agnico) , Agnico has the right to participate in certain future equity financings by Kootenay in order to maintain its pro rata investment in Kootenay.
Agnico is acquiring the Units for investment purposes. Depending on market conditions, Agnico may, from time to time, acquire additional securities of Kootenay or dispose of some or all of the Common Shares or Warrants.