TORONTO, Aug. 25 /CNW-PRN/ - Agnico-Eagle Mines Limited (''Agnico-Eagle'') announced today that Barclays Bank PLC and Deustche Bank AG (the ''Banks'') have entered into a binding commitment with Agnico-Eagle to underwrite a US$100 million, 8-year bank facility with a revolving feature (the ''Facility''). The Facility is intended partly to finance capital costs related to the expansion of the LaRonde Mine to 5,000 tons per day and partly for general corporate purposes. The Banks have concluded technical due diligence on the LaRonde Mine and, subject to terms and conditions of definitive legal documentation, funding under the Facility is expected to be made available over the next eight to ten weeks.

''We are pleased to have secured the financing to continue our drive to optimize and expand operations at LaRonde,'' said Sean Boyd, President and Chief Executive Officer. ''This credit line will further strengthen our balance sheet so that Agnico-Eagle is in a better position to grow its business and increase cash flows during this period of gold price weakness,'' added Mr. Boyd.

Under the terms of the Facility, which will be primarily secured by a first charge on the LaRonde mine, an initial tranche of US$75 million will be made available over the next eighteen months as key construction and ore reserve conversion milestones are met. A second tranche of US$25 million will also be made available, at the Company's option, once the milestones are met and contingent upon demonstration of the Company's ability to meet certain minimum forward-looking debt service cover ratios.

Agnico-Eagle Mines Limited is an established Canadian gold producer with operations located principally in northwestern Quebec and exploration and development activities in Quebec, Ontario and Nevada. Consistently one of the industry's lowest-cost producers, Agnico's operating history includes 24 years of continuous gold production primarily from underground mining operations. Current proven and probable gold reserves stand at 1.5 million contained ounces, with an additional 3.5 million ounces in the mineral resource category at its LaRonde Mine. Agnico-Eagle is currently focused on the expansion and large scale exploration program of its LaRonde Mine which is expected to result in increased gold production and expanded gold reserves.

This press release contains certain ''forward-looking statements'' (within the meaning of the United States Private Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Other risks and uncertainties are disclosed under the heading ''Risk Factors'' in the Company's Annual Information Form (AIF) filed with certain Canadian securities regulators (including the Ontario and Quebec Securities Commissions) and with the United States Securities and Exchange Commission (as Form 20-F).

SOURCE Agnico-Eagle Mines Limited