Rupert Resources announces closure of deal with Agnico Eagle, as Agnico acquires 9.9% shareholding in Rupert


News provided by

News Updates on Industries

Feb 14, 2020, 19:30 EST


Feb 14, 2020, 19:30 /Comserve / -- ‘Agnico Eagle’ made the announcement recently that it would be acquiring 15,391,605 units belonging to Rupert Resources Limited (TSX-V: RUP) or “Rupert Resources” through a non-brokered private placement.

Image placeholder

The announcement had come in recently from Agnico Eagle that it would be subscribing to 15,391,605 units of Rupert Resources Limited and would be paying a total consideration of USD 13,082,864. The cost of acquiring each unit has been fixed at USD 0.85 per unit. The deal would be completed through a non-brokered private placement, with each unit comprising of one Common share of Rupert and 0.75 for one share purchase warrant of Rupert. (One Common share purchase warrant is a “Warrant”). The warrant holder would be entitled to acquire one Common share at a price of USD 1.00 for a period of three years starting from the date of closure of private placement. The date of closure would be on February 12, 2020. However, there are some pre-conditions that are required to be fulfilled by the warrant holder.

As on date of closure of private placement, 15,391,605 Common shares would be owned by Agnico Eagle representing about 9.9% of the issued and outstanding Common shares on a non-diluted basis, while 11,543,703 Warrants representing 16.1% of the issued and outstanding Common shares on a partially diluted basis are expected to be owned and held by Agnico Eagle.

Agnico Eagle will be entering into an agreement with Rupert pursuant to the closure of the private placement, wherein, some rights would be granted to Agnico Eagle that would be subject to the condition that Agnico Eagle must maintain a specified percentage of ownership in Rupert at the time of financing. Other rights that Agnico Eagle would be receiving is the right of participation in financing of equities, so that it could maintain its ownership on a pro-rata basis in Rupert during the time of such financing or it can acquire an ownership interest of up to 9.9% or 16.1% in Rupert. This would depend upon whether Agnico Eagle has exercised warrants during such time period. Secondly, Agnico Eagle would be able to nominate a person to the Board of Directors. Moreover, if the present board strength rises to eight or more directors, Agnico Eagle would be able to exercise its right to appoint two persons to the Board. Currently, Agnico Eagle has decided not to exercise the option of appointing directors to the Board.

Agnico Eagle would be engaging in the acquisition of Common shares and Warrants only for the purposes of investment. However, based on the conditions of the market as well as various other factors, Agnico Eagle would be able to exercise its option of acquisition as well as disposal of Common shares, including Common share purchase warrants or any other securities of Rupert that it has been holding at that particular point of time.

Agnico Eagle would be filing an early warning report that is required to be filed as per the securities laws applicable to the company. A copy of the early warning report would also be made available at the head office of the company.

About Agnico Eagle

Agnico Eagle, a gold mining company based in Canada has been involved in the production of precious metals since the year 1957. The company has its operating mines located at Canada, Mexico and Finland. The company has also been conducting its operations and activities associated with exploration and development in all of these nations, including countries such as Sweden and the United States.

Independent Writer


For more information, please contact:

Jackie Hurtado

News Updates on Industries
Email: jackiehurtado483@gmail.com
Tel: +1-612-695-8655

Related Links
https://www.comserveonline.com



Also from this source


Innovative Industrial Properties Enters into A Sale-Leaseback Deal for USD 10.5 Million with Cresco Labs

Innovative Industrial Properties, Inc. (NYSE: IIPR), a real estate investment trust completed its pu


Nikon To Present Its Upcoming Products For Consumer Electronics Show 2020

Nikon will announce a number of new products, including globally streamed presentations with an imme