TORONTO--(BUSINESS WIRE)--Feb. 15, 1999--Sudbury Contact Mines
Limited (TSE:SUD) and Agnico-Eagle Mines Limited (TSE:AGE) (NYSE:AEM)jointly announce that Sudbury Contact has entered into a
``flow-through'' private placement agreement with Agnico-Eagle pursuant
to which Sudbury Contact will, subject to regulatory approval, issue
571,428 common shares to Agnico-Eagle for aggregate proceeds of
$799,999. Sudbury Contact has agreed to use all such proceeds for the
purpose of incurring Canadian exploration expenses in connection with
its 1999 and 2000 exploration activities and to renounce to
Agnico-Eagle the full amount of such expenses for income tax purposes.
This transaction is expected to close on or about March 8, 1999.
Agnico-Eagle reports that its shareholding in Sudbury Contact
will, on completion of the private placement, increase from 10,294,902
common shares (or approximately 57.6 percent of the outstanding common
shares) to 10,866,330 common shares (or approximately 58.9 percent of
the outstanding common shares, after giving effect to the private
placement). Mentor Exploration and Development Co., Ltd. also owns an
aggregate of 4,441,148 common shares of Sudbury Contact (or
approximately 24.1 percent of the outstanding common shares, after
giving effect to the private placement).
Sudbury Contact is an exploration and development company focused
on gold, diamond and base metal properties, which owns or has under
option 34 properties in northeastern Ontario and northwestern Quebec.
Agnico-Eagle Mines Limited is an established Canadian gold
producer with operations located principally in Northwestern Quebec
and exploration and development activities in Quebec and Ontario.
Consistently one of the industry's lowest-cost producers
Agnico-Eagle's operating history includes 24 years of continuous gold
production primarily from underground mining operations. Agnico-Eagle
is currently focused on a development and expansion program at its
LaRonde Division that is expected to result in increased gold
production and expanded gold reserves.
Contact:
Agnico-Eagle Mines Limited/Sudbury Contact Mines Limited
Sean Boyd, 416/947-1212
|