Stock Symbols: AEM (NYSE)
AGE (TSX)
(All amounts expressed in U.S. dollars unless otherwise noted)
TORONTO, Sept. 22 /PRNewswire-FirstCall/ - Agnico-Eagle Mines Limited
today announced that it has closed its previously announced transaction to
purchase a 100% interest in Barrick Gold Corporation's Bousquet Property,
immediately to the west and south of Agnico-Eagle's LaRonde Mine in
northwestern Quebec. Agnico-Eagle also acquired used machinery and equipment
from the now closed Bousquet Mines including underground rolling stock and the
headframe at Bousquet 2. In addition to the Bousquet Mine assets, Agnico-Eagle
increased its interest in the Bruce Property, located one mile east of
LaRonde, to 100% and purchased certain of Barrick's regional exploration
properties including Orion B-1, Orion B-2, Joannes North, Orion South and
Norgold, all located to the south and west of Cambior's Doyon Property.
The purchase consideration paid by Agnico-Eagle on closing was C$5
million in cash and C$2 million in common shares of Agnico-Eagle, and the
assumption of specified reclamation obligations relating to the Bousquet
Property, excluding certain employment-related liabilities. In addition
Barrick retains a 2% net smelter return royalty on all the properties acquired
by Agnico-Eagle.
"With this transaction, we now control over 14 miles of one of Canada's
largest gold belts, the Cadillac-Bousquet Belt which hosts our LaRonde Mine.
The consolidation of property interests by Agnico-Eagle in this region over
the last few years has opened up several new exploration targets and
geological structures that were not accessible in the past by previous owners,
due to underground infrastructure and property boundary constraints," said
Sean Boyd, President and Chief Executive Officer. "We are now in the process
of putting together a more comprehensive regional exploration and mine
building strategy using our expanded property position and decades of
experience on the belt," added Mr. Boyd.
Regional Development Team Now in Place
As discussed during the second quarter conference call, the Company has
now assembled its regional mine building and development team. Headed by Paul
Henri Girard, this mine building group will consist of experts in engineering,
metallurgy and geology and will be entirely dedicated to the Company's
regional development opportunities including LaRonde II, Lapa and Goldex. Mr.
Girard, who has been with Agnico-Eagle since 1987, has been LaRonde's mine
manager since 1997. Replacing him in that position will be Daniel Racine,
previously assistant mine manager and an Agnico-Eagle employee since 1988.
Forward Looking Statements
This news 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. 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).
About Agnico-Eagle
Agnico-Eagle is a long established Canadian gold producer with operations
located in northwestern Quebec and exploration and development activities in
eastern Canada and the southwestern United States. Agnico-Eagle's LaRonde Mine
in Quebec is Canada's largest gold deposit. The Company has full exposure to
higher gold prices consistent with its policy of no forward gold sales. It has
paid a cash dividend for 23 consecutive years.
SOURCE Agnico-Eagle Mines Limited
CONTACT:
Barry Landen, V.P. Corporate Affairs
Agnico-Eagle Mines Limited
(416) 947-1212
(AGE. AEM)
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