Agnico Eagle to Sell Probe Shares, Warrants to Goldcorp

Agnico Eagle Mines Ltd. (TSX:AEM,NYSE:AEM) announced that it has entered into an agreement to sell Goldcorp Inc. (TSX:G,NYSE:GG) its Probe Mines Ltd. (TSXV:PRB) shares and warrants. Goldcorp announced earlier this week that it plans to acquire Probe.

Agnico Eagle will sell Goldcorp:

(i) 7,320,200 common shares (the ‘Purchased Shares’) of Probe Mines Limited (‘Probe’) for cash consideration of C$5.00 per Purchased Share, and (ii) 2,347,951 common share purchase warrants of Probe (the ‘Purchased Warrants’) for cash consideration of C$2.90 per Purchased Warrant. Each Purchased Warrant entitles the holder to purchase one common share of Probe (each a ‘Share’) at a price of C$2.10 until May 28, 2015. The Purchased Shares represent approximately 8.1% of the issued and outstanding Shares on a non-diluted basis. The Purchased Shares and the Purchased Warrants collectively represent approximately 10.4% of the issued and outstanding Shares assuming exercise of the Purchased Warrants.

Upon the closing of the transaction, which is expected to occur on or about January 28, 2015, Agnico Eagle will hold (i) no Shares, and (ii) 3,277,049 common share purchase warrants of Probe (the ‘Remaining Warrants’), each exercisable on the same terms as the Purchased Warrants. The Remaining Warrants represent approximately 3.5% of the issued and outstanding Shares assuming exercise of the Remaining Warrants.

Click here to read the full Agnico Eagle Mines Ltd. (TSX:AEM,NYSE:AEM) press release.