Agnico-Eagle to raise $252-million in issue

The Canadian Press

November 19, 2008 at 11:56 AM EST

TORONTO — — Agnico-Eagle Mines Ltd. [AEM-T] said Wednesday it plans to raise $252-million (U.S.) in an issue of new shares.

The Toronto-based company, with developing mines in Canada, Finland, Mexico and the United States, said it will issue 8 million units at $31.50 each, consisting of a share and half a share-purchase warrant.

Under the private placement, “one of Canada's largest pension funds” will buy at least 4 million of the units and will take up any remaining not purchased by other buyers.

That agreement is conditional on the settlement of definitive documentation, Agnico-Eagle said in a statement.

Agnico-Eagle Mines

“This financing is a prudent measure to secure our ongoing production growth and strengthen our financial position,” said chief executive Sean Boyd.

“It also puts the company in an excellent position to further new internal expansion opportunities and to continue to aggressively grow our gold reserves within our portfolio of high-quality deposits.”

The company said it plans to use the proceeds for mine development and related capital expenditures, as well as for general corporate purposes.

Shares in Agnico-Eagle were up $3.96, or more than 10 per cent, at $41.51 before trading was halted in advance of the announcement.