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Agnico Eagle Mines Limited has announced that it has agreed to subscribe for 11,680,000 common shares (the “Subject Shares”) of Belo Sun Mining Corp. (TSX:BSX) (“Belo Sun”) in a non-brokered private placement at a price of $0.53 per Subject Share, for total consideration of $6,190,400.
The Subject Shares represent approximately 3.24% of the issued and outstanding common shares of Belo Sun on a non-diluted basis at the date hereof. Closing of the private placement is expected to occur on or about March 16, 2016, the miner said in a statement.
On closing of the private placement, Agnico Eagle will own 74,180,000 common shares of Belo Sun, representing approximately 19.95% of the issued and outstanding common shares of Belo Sun on a non-diluted basis (after giving effect to the issuance of the Subject Shares).
As previously disclosed, Agnico Eagle and Belo Sun are party to an investor rights agreement dated May 21, 2015 pursuant to which Agnico Eagle has the right (which it has not exercised) to nominate one person to the board of directors of Belo Sun and the right to participate in certain future equity financings by Belo Sun in order to maintain its pro rata investment.
Agnico Eagle is acquiring the Subject Shares for investment purposes. Depending on market conditions and other factors, Agnico Eagle may, from time to time, acquire additional common shares or other securities of Belo Sun or dispose of some or all of the common shares or other securities of Belo Sun that it owns at such time.
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Sweden. Agnico Eagle and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
Source: Ghana/ClassFMonline.com/91.3fm
