Agnico-Eagle amalgamates with Mentor

Agnico-Eagle Mines (AGE-T) has completed an amalgamation with Toronto-based Mentor Exploration and Development (MV-V). The combined entity will continue operations under the name Agnico-Eagle Mines.

Pursuant to the plan of arrangement, Agnico acquired the remaining 50.5% of Mentor it did not already own via a share exchange ratio of 0.21 an Agnico share for each Mentor share. Under the deal, 369,348 Agnico shares are being issued.

Mentor’s main asset is its 22.6% stake in Sudbury Contact Mines (SUD-T). Agnico holds 59% of Sudbury Contact. Mentor also has interests in mineral exploration activities in Canada and Nevada.

Agnico recently celebrated the inauguration of its Penna shaft at the newly expanded LaRonde mine near Val d’Or, Que. At the end of 2000, LaRonde’s proven and probable reserves stood at 33.6 million tons grading 0.1 oz. gold and 2.34 oz. silver per ton, 0.32% copper and 4.4% zinc. When combined with additional resources of 25.3 million tons, LaRonde’s global reserves and resources total 59 million tons of 0.13 oz. gold, 1.70 oz. silver, 0.5% copper and 2.68% zinc. Known mineralization extends to almost 10,000 ft. below surface and remains open in all directions. The bulk of existing reserves are in zone 20 North.