Agnico-Eagle Mines Limited announced that it has executed a new non-amortizing US$300 million revolving credit facility, maturing September 2010. Including its pre-existing credit facility, the Company now has US$600 million of credit lines. The pre-existing facility is also a non-amortizing US$300 million revolving credit line, maturing January 2013. Both credit facilities are unsecured. The new facility is being provided by a syndicate of international banks including Scotia Capital (Lead Arranger and Administrative Agent), Toronto-Dominion Bank (Syndication Agent), BMO Capital Markets (Co- Documentation Agent), Commonwealth Bank of Australia (Co-Documentation Agent), Royal Bank of Canada, Barclays Bank and National Bank of Canada.
“We are well capitalized for our growth plan that is expected to increase annual gold output to approximately 1.3 million ounces by 2010″ said Sean Boyd, Vice Chairman and Chief Executive Officer. “Our commercial banking partners have provided us with a low-cost, non-dilutive source of capital, giving us additional financial flexibility as we build our project pipeline and increase gold reserves” added Mr. Boyd.
Agnico-Eagle is a long established Canadian gold producer with operations located in Quebec and exploration and development activities in Canada, Finland, Mexico and the United States. Agnico-Eagle’s LaRonde Mine is Canada’s largest gold deposit in terms of reserves. The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales. It has paid a cash dividend for 26 consecutive years.