Agnico raises US$44 million

Gold miner Agnico-Eagle Mines (TSE) expects to raise US$43.9 million through a public offering of 4.25 million common shares at US$11 per share.

The offering is being made in the U.S., Canada and Europe under the rarely used multi-jurisdictional disclosure system. The procedure gives Canadian companies access to foreign markets using Canadian documents. Agnico has granted the underwriters — Donaldson, Lufkin & Jenrette Securities and Merrill Lynch– an option to buy up to 637,000 additional shares to cover over-allotments if necessary.

Proceeds of the offering, which was expected to close July 15, will be used to repay bank debt and finance exploration and development projects. “This is the first page in a new book for us,” President Paul Penna told shareholders at the annual meeting in June. “When our underwriting is complete, it’s going to feel good that we’ll be sinking two new shafts.” One of the new shafts will provide access to Zone 6 at Agnico’s flagship LaRonde mine in northwestern Quebec. The main shaft there will be deepened to 5,000 ft. from 3,200 ft.

To provide ore for Agnico’s Joutel mill, a second shaft will be sunk at the Vezza project north of LaRonde.