Agnico Eagle Mines Limited (NYSE:AEM) (TSX:AEM) ("Agnico Eagle") announced today that it has agreed to subscribe for 13,333,333 units ("Units") of Candelaria Mining Corp. (TSXV:CAND) ("Candelaria") in a non-brokered private placement at a price of $0.45 per Unit for total consideration of approximately $6,000,000. Each Unit is comprised of one common share of Candelaria (a "Common Share") and one-half of one common share purchase warrant of Candelaria (a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at a price of $0.65 for a period of 36 months following the closing date of the private placement. Closing is expected to occur on September 30, 2021 and is subject to certain conditions.
Agnico Eagle currently owns 10,120,000 Common Shares, representing approximately 7.8% of the issued and outstanding Common Shares on a non-diluted basis. On closing of the private placement, Agnico Eagle will own 23,453,333 Common Shares and 6,666,667 Warrants, representing approximately 15.94% of the issued and outstanding Common Shares on a non-diluted basis and 19.59% of the issued and outstanding Common Shares on a partially-diluted basis.
Agnico Eagle and Candelaria entered into an investor rights agreement on June 9, 2017, which was amended on September 1, 2021 in connection with the private placement, pursuant to which Agnico Eagle is entitled to certain rights, provided Agnico Eagle maintains certain ownership thresholds in Candelaria, including: (i) the right to participate in equity financings in order to maintain its pro rata ownership in Candelaria at the time of such financing or acquire up to a 19.99% ownership interest in Candelaria; and (ii) the right (which Agnico Eagle has no present intention of exercising) to nominate one person (and in the case of an increase in the size of the board of directors of Candelaria to 10 or more directors, two persons) to the board of directors of Candelaria.
Agnico Eagle is acquiring the Common Shares and the Warrants for investment purposes. Depending on market conditions and other factors, Agnico Eagle may, from time to time, acquire additional Common Shares, common share purchase warrants or other securities of Candelaria or dispose of some or all of the Common Shares, common share purchase warrants or other securities of Candelaria 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: