(All amounts expressed in Canadian dollars unless otherwise noted)
TORONTO, May 23, 2013 /PRNewswire/ - Agnico Eagle Mines Limited (TSX and NYSE: AEM) ("Agnico") today announced that it has entered into an agreement with Cormark Securities Inc. ("Cormark") and Probe Mines Limited ("Probe") pursuant to which Agnico has agreed to purchase 7,500,000 units of Probe (the "Units") from Cormark at a price of $1.50 per Unit for total consideration of $11,250,000. Each Unit is comprised of one common share of Probe (each, a "Common Share") and three-quarters of one common share purchase warrant of Probe (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at a price of $2.10 for a period of two years from the closing date. Closing of the transaction is expected to occur on or about May 28, 2013.
On closing of the transaction, Agnico will hold 7,500,000 Common Shares and 5,625,000 Warrants, representing 9.94% of the issued and outstanding Common Shares on a non-diluted basis and 16.19% of the issued and outstanding Common Shares assuming exercise of the Warrants.
Under the agreement, Probe granted Agnico 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 Probe in order to maintain its pro rata investment in Probe.Agnico is acquiring the Units for investment purposes. Depending on market conditions, Agnico may, from time to time, acquire additional securities of Probe or dispose of some or all of the Common Shares or Warrants.