TORONTO--(BUSINESS WIRE)--April 22, 2004--Agnico-Eagle Mines
Limited (NYSE:AEM) (TSX:AGE):
(All amounts expressed in U.S. dollars unless otherwise noted)
Agnico-Eagle Mines Limited (NYSE:AEM) (TSX:AGE) today announced an
agreement to acquire a 12.7 million common share block in Riddarhyttan
Resources AB (Riddarhyttan) from Riddarhyttan's largest shareholder,
Swedish private company Dunross & Co. AB. Consideration per share will
be Swedish Krona (SEK) 6.60 for total cash consideration of
approximately $10.8 million (using the current SEK/US$ rate of
approximately 7.74). The transaction is expected to close in the
middle of May 2004 subject to, among other conditions, the resignation
of Dunross' two representatives on Riddarhyttan's Board of Directors
and the election of two representatives from Agnico-Eagle.
Strategic Investment in Promising Gold Camp
Riddarhyttan is a publicly traded company on the Stockholm Stock
Exchange (RYHT). Including shares already owned by Agnico-Eagle, this
purchase will bring the Company's ownership interest in Riddarhyttan
to 14.1% (13.7% on a diluted basis).
Riddarhyttan's principal asset is a 100% interest in the
Suurikuusikko gold deposit in Finland. Suurikuusikko is an advanced
exploration project located approximately 550 miles north of Helsinki
near the town of Kittila in Finnish Lapland. Kittila is serviced by
daily flights from Helsinki and the project has ready access to road,
water, power and a skilled workforce.
Riddarhyttan's property position in the Suurikuusikko area
consists of 22 contiguous claims (approximately 4,261 acres) with
similar Precambrian greenstone belt geology and topography to
Agnico-Eagle's vast land package in the Abitibi region of Quebec.
Gold mineralization reported to date by Riddarhyttan occurs along a
north trending, steeply dipping shear zone measuring over 10 miles in
length. They consist of near-surface, lens shaped, sulphide bearing
bodies which also strike north-south and have an almost vertical dip.
Often, the zones can be followed for several hundred feet both along
strike and at depth. The Main Zone at Suurikuusikko, the most
extensive occurrence discovered so far, is approximately 5,200 feet
long. Its width varies from 10 to over 100 feet, it has been traced
from surface to depths of at least 1,200 feet and it is open at
depth. According to Riddarhyttan, most of the gold is associated with
sulphide minerals (arsenopyrite and pyrite). The remainder (less than
10%) is "free gold" appearing as minuscule grains in pyrite mostly
found in the upper oxidized parts of the mineralized zones.
Extensive Exploration and Metallurgical Program Planned
Since 1998, work by Riddarhyttan on Suurikuusikko includes 393
drill holes (approximately 245,000 feet), ground geophysics, till
sampling, geological mapping and metallurgical testing. Of the 2.5
miles of mineralized structure tested in relatively greater detail so
far (the entire structure is over 10 miles long), only 0.6 miles of
the trend (near the Main Zone) has been investigated to a depth of
1,000 to 1,500 feet. The remainder of the favourable structure tested
in detail so far (1.9 miles) has only been investigated to a depth of
between 150 to 500 feet. All occurrences (higher grade and wider
parts of the trend) appear to still be open at depth and the
gold-bearing zones are thought to extend outside the area explored in
detail both towards the north as well as towards the south.
A preliminary economic assessment was completed with respect to
mining the deposit by both underground and open pit methods in 2002.
Riddarhyttan is expected to undertake further drilling and
metallurgical testing over the next year. The objective of this work
would be to define, estimate and potentially increase the mineral
resource, discover new mineralized occurrences, refine the
metallurgical processing approach and review the preliminary economic
assessment. Riddarhyttan had over $3.5 million of cash on hand as at
March 31, 2004.
Agnico-Eagle believes that the Suurikuusikko property has
significant potential to host additional gold resources and if
exploration and metallurgical studies are successful, it also has the
potential of hosting a mining camp similar to that in the
LaRonde-Cadillac area.
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 24 consecutive years.
CONTACT:
Agnico-Eagle Mines Limited
Barry Landen
V.P. Corporate Affairs
(416) 947-1212
SOURCE: Agnico-Eagle Mines Limited
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