Agnico-Eagle Mines Invests in Kootenay Silver Inc

Agnico-Eagle Mines Limited (NYSE:AEM, TSX:AEM) announced that they have invested in  Kootenay Silver Inc. with  a non-brokered private placement at a price of $0.76 per Unit for total consideration of $4,750,000.

As quoted in the press release:

On closing of the private placement, Agnico will hold 6,250,000 Common Shares and 3,125,000 Warrants, representing 9.96% of the issued and outstanding Common Shares on a non-diluted basis and 14.23% of the Common Shares assuming exercise of the Warrants.  The agreement also provides Agnico with a participation right pursuant to which, during the two-year period from the closing date, and provided that Agnico at the time continues to hold no less than five percent of the then issued and outstanding Common Shares (taking into account convertible securities owned by Agnico), Agnico has the right to participate in certain future equity financings by Kootenay in order to maintain its pro rata investment in Kootenay.

To view the whole press release, click here.