Belo Sun Mining (BSX-T) Agnico Eagle Mines (AEM-T) announces additional investment in Belo Sun Mining
July 25, '16 - NR
Agnico Eagle Mines announced today that, on July 22, 2016, Agnico Eagle agreed to purchase 14,922,760 common shares (the "Subject Shares") of Belo Sun Mining Corp. (TSX:BSX) ("Belo Sun") pursuant to Belo Sun's previously announced underwritten public offering of 77,320,000 common shares (the "Offering"). Agnico Eagle will pay Cdn.$0.85 per Subject Share, for total consideration of Cdn.$12,684,346. Agnico Eagle understands that closing of the Offering is expected to occur on or about July 27, 2016.
Agnico Eagle currently owns 74,180,000 common shares of Belo Sun, representing approximately 19.2% of the issued and outstanding common shares of Belo Sun on a non-diluted basis. On closing of the Offering, Agnico Eagle will own 89,102,760 common shares of Belo Sun, representing approximately 19.2% of the issued and outstanding common shares of Belo Sun on a non-diluted basis (after giving effect to the Offering, but otherwise assuming that the number of issued and outstanding common shares of Belo Sun as at the date hereof remains unchanged).
As previously disclosed, Agnico Eagle and Belo Sun are party to an investor rights agreement dated May 21, 2015 (the "Investor Rights Agreement") pursuant to which Agnico Eagle has the right (which it has not exercised) to nominate one person to the board of directors of Belo Sun and the right to participate in certain equity financings by Belo Sun in order to maintain its pro rata investment.
Agnico Eagle is acquiring the Subject Shares for the purpose of maintaining its pro rata ownership interest in Belo Sun pursuant to its rights under the Investor Rights Agreement. Agnico Eagle may, from time to time, acquire additional common shares or other securities of Belo Sun or dispose of some or all of the common shares or other securities of Belo Sun 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:
David Wong
Agnico Eagle Mines Limited
145 King Street East, Suite 400
Toronto, Ontario M5C 2Y7
Telephone: 416-947-1212
Agnico Eagle's head office is located at 145 King Street East, Suite 400, Toronto, Ontario M5C 2Y7. Belo Sun's head office is located at 65 Queen Street West, Suite 815, Toronto, Ontario M5H 2M5.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Sweden. Agnico Eagle and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
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