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AGNICO EAGLE ANNOUNCES FINANCING AND AN EARN-IN AGREEMENT WITH FIREFOX GOLD CORP

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AGNICO EAGLE ANNOUNCES FINANCING AND AN EARN-IN AGREEMENT WITH FIREFOX GOLD CORP

 

 

 

 

Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM)  announced that it has acquired 19,010,000 units of FireFox Gold Corp. (TSX-V: FFOX) in a non-brokered private placement at a price of $0.075 per Unit for total consideration of approximately $1,425,750. Each Unit was comprised of one common share of FireFox and one common share purchase warrant of FireFox. Each Warrant entitles the holder to acquire one Common Share at a price of $0.10 at any time prior to December 20, 2028, subject to acceleration of the expiry date upon the occurrence of certain events.

 

Prior to the private placement, Agnico Eagle did not own any Common Shares. Following the private placement, Agnico Eagle owns 19,010,000 Common Shares and 19,010,000 Warrants, representing approximately 10.9% of the issued and outstanding Common Shares on a non-diluted basis and 19.6% of the issued and outstanding Common Shares on a partially-diluted basis.

 

Agnico Eagle and FireFox entered into an investor rights agreement in connection with the private placement pursuant to which Agnico Eagle was  granted certain rights, provided Agnico Eagle maintains certain ownership thresholds in FireFox, including: (i) 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 FireFox at the time of such financing or acquire up to a 19.99% ownership interest, on a partially diluted basis, in FireFox; and (ii) 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 FireFox to 10 or more directors, two persons) to the board of directors of FireFox.

 

Agnico Eagle acquired the Common Shares and the Warrants for investment purposes.  Depending on market conditions and other factors, Agnico Eagle may, from time to time, acquire additional Common Shares, common share purchase warrants or other securities of FireFox or dispose of some or all of the Common Shares, common share purchase warrants or other securities of FireFox that it owns at such time.

 

On December 20, 2023, Agnico Eagle Finland Oy, a wholly-owned subsidiary of Agnico Eagle, FireFox Gold Oy, a wholly-owned subsidiary of Firefox, and FireFox, entered into an earn-in agreement pursuant to which FireFox Oy granted Agnico Finland the right to earn a 51% interest in the Kolho properties owned by FireFox Oy located in northern Finland (the “Kolho Property”). Upon Agnico Eagle earning a 51% interest in the Kolho Property, Agnico Finland and FireFox Oy, among others, will enter into a joint venture agreement governing the relationship of the parties in respect of the Kolho Property, pursuant to which Agnico Finland will be the operator of the project and will be granted the right to acquire an additional 24% interest in the Kolho Property.

 

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 senior Canadian gold mining company, 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.

 

Posted December 21, 2023

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