We are pleased to announce that Agnico Eagle Mines Limited has agreed to acquire by way of private placement 14,420,000 common shares of Otis at a price of $0.35 per Common Share for proceeds of $5,047,000.
On closing of the Transaction, Agnico Eagle will own approximately 9.95% of the issued and outstanding Common Shares on a non-diluted basis. Proceeds will be primarily destined to exploration at the Kilgore Gold Project in Clark County, Idaho as well as working capital and general corporate purposes.
“We are very excited to welcome Agnico as a strategic investor in Otis. Agnico is an experienced global leader in the precious metals sector with a successful track record of identifying and building quality assets. We believe the Transaction serves to recognize the strong potential for growth at Kilgore. This investment will allow Otis to aggressively pursue its goal of defining an economic gold deposit close to infrastructure in an emerging gold district. We look forward to working with Agnico, and we thank the Agnico team for their confidence in Otis.” -Craig Lindsay, CEO.
On closing of the Transaction, Agnico Eagle and Otis will enter into an investor rights agreement pursuant to which Agnico Eagle will have the right to participate in certain equity financings by Otis in order to maintain its interest of up to 9.95% in the company. The Common Shares issued under this Transaction will be subject to a hold period of four months and one day from the closing date of the Transaction in accordance with applicable Canadian securities laws. The closing of the Offering is expected to occur on or about February 28th, 2017, and is subject to receipt of all necessary regulatory approvals and certain other conditions.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Sweden. The
Company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983. To learn more, visit Agnico’s website.
For a review of key events at the Kilgore Gold Mine project, read the article titled A Remarkable Year for Gold Mining Projects
Notably, recent gold intercepts at Kilgore defined a significant, previously unrecognized and under-explored target that collectively delineated a broad zone of gold mineralization, now known as the “Aspen Corridor.” For details on this recent development, read this article.