Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) announced today that it has entered into a transaction with First Nordic Metals Corp. (TSX-V: FNM) that will result in Agnico Eagle acquiring 27,954,872 common shares of FNM.

Agnico Eagle has agreed to exchange amounts that remain due under the asset purchase agreement between certain subsidiaries of Agnico Eagle, certain subsidiaries of FNM and EMX Royalty Corporation dated March 19, 2021, as amended May 1, 2023 (the “Purchase Agreement”) for 27,954,872 Common Shares. The Transaction is being effected by way of a subscription agreement between FNM and Agnico Eagle, whereby Agnico Eagle has agreed to subscribe for 27,954,872 Common Shares at a price of $0.2925 per Common Share for total consideration of approximately $8,176,800 in a non-brokered private placement, which is expected to close on or about July 22, 2024.

On closing of the Transaction, the Consideration will be immediately directed by FNM to its wholly-owned subsidiary Gold Line Resources Ltd. and Gold Line will further direct the Consideration to Agnico Eagle Finland Oy and Agnico Eagle Sweden AB, each a wholly-owned subsidiary of Agnico Eagle, in satisfaction of payments that remain owing by Gold Line under the Purchase Agreement.

Agnico Eagle currently owns 1,458,294 Common Shares, representing approximately 0.75% of the issued and outstanding Common Shares on a non-diluted basis. On closing of the Transaction, Agnico Eagle will own 29,413,166 Common Shares, representing approximately 13.25% of the issued and outstanding Common Shares on a non-diluted basis.

On closing of the Transaction, Agnico Eagle and FNM will enter into an investor rights agreement pursuant to which Agnico Eagle will be granted certain rights, provided that Agnico Eagle maintains certain ownership thresholds in FNM, 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 FNM at the time of such financing or acquire up to a 19.99% ownership interest in FNM; 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 FNM to eight or more directors, two persons) to the board of directors of FNM.

Agnico Eagle is acquiring the Common Shares to settle the amounts that remain due under the Purchase Agreement. Depending on market conditions and other factors, Agnico Eagle may, from time to time, acquire additional Common Shares or other securities of FNM or dispose of some or all of the Common Shares or other securities of FNM 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

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.