AGNICO EAGLE ANNOUNCES INVESTMENT IN FUERTE METALS CORPORATION

Executive Summary

• Agnico Eagle acquired 5,000,000 subscription receipts from Fuerte Metals’ subsidiary for C$8.25 million, representing a strategic equity investment in the junior miner.
• Upon satisfaction of escrow conditions, the receipts will convert into units (common share + warrant), increasing Agnico Eagle’s ownership to ~10.17 M common shares and 5 M warrants (~8.12% non‑diluted, ~11.65% partially‑diluted).
• The transaction includes a right for Agnico Eagle to participate in future financings or nominate board members, underscoring a long‑term strategic position in Fuerte’s high‑potential projects.

Key Details

• Purchase price: C$1.65 per subscription receipt; total consideration C$8,250,000.
• Instrument: 5,000,000 subscription receipts issued by 1555489 B.C. Ltd., a wholly‑owned subsidiary of Fuerte Metals Corp.
• Conversion terms: Each receipt converts to one unit (1 common share + 1 warrant) upon escrow release; warrants exercisable at C$2.50 per share for five years.
• Escrow Release Condition: Completion of Fuerte’s acquisition of certain properties, with partial consideration of up to 33,572,115 common shares (or convertible securities).
• Pre‑transaction ownership: 5,171,310 common shares (~8.43% non‑diluted).
• Post‑transaction expected ownership: 10,171,310 common shares + 5,000,000 warrants (~8.12% non‑diluted; ~11.65% partially‑diluted assuming warrant exercise).
• Investor Rights Agreement (dated Jan 31 2024): Grants Agnico Eagle rights to maintain ownership thresholds, participate in future equity financings, and nominate up to two directors if Fuerte’s board expands to ≥8 members.
• Future flexibility: Agnico Eagle may acquire additional securities or dispose of existing holdings based on market conditions and strategic priorities.
• Regulatory filing: An early warning report will be filed with applicable securities regulators.

Notable Quotes

(No direct quotes were provided in the release.)