Agnico Eagle makes strategic investment in Cartier Resources

20 December 2016 (Last Updated December 20th, 2016 18:30)

Agnico Eagle Mines has agreed to acquire Cartier Resources through a private placement of 22.5 million common shares at a price of $0.20 each to raise $4.5m.

Agnico Eagle Mines has agreed to acquire Cartier Resources through a private placement of 22.5 million common shares at a price of $0.20 each to raise $4.5m.

On completion of the deal, Agnico will own approximately 19.97% of the issued and outstanding common shares on a non-diluted basis.

Proceeds from the offering will be used for exploration at the Cartier’s five main projects located in Québec at Chimo, Benoist, Wilson, Fenton and Cadillac Extension, as well as working capital and general corporate purposes.

Cartier Resources CEO Philippe Cloutier said: “We are very proud to initiate this business relationship with Agnico. We will continue to add value to our projects in the diligent and thoughtful manner we have done to date, but also seek to grow our resource potential by way of an aggressive 40,000m drill campaign in 2017 and into 2018.

 

“This strategic investment by Agnico will allow the company to pursue its goals of outlining an economic gold deposit close to infrastructure in the most expedient manner possible.”

Upon closing of the transaction, Agnico and Cartier will enter an investor rights agreement where Agnico will have the right to participate in certain equity financings by Cartier in order to maintain its interest of up to 19.97% in Cartier. Agnico will also have the right to nominate one person to the board of directors of Cartier, or to nominate two if the number of directors reaches ten or more.

In addition, under the investor rights agreement, Agnico will be subject to a two-year standstill, which will prohibit Agnico from taking certain actions, including acquiring more than 19.99% of the issued and outstanding common shares, subject to certain exceptions.

All securities issued under this deal are subject to a hold period of four months and one day from the closing date of the offering in line with Canadian securities laws.

Closing of the offering is expected to occur around 22 December and is subject to receipt of regulatory approvals and certain other conditions.