JOHANNESBURG (miningweekly.com) – Canadian gold miner Agnico Eagle has entered into a share purchase agreement with G4G Capital to earn 19.93% of its total issued and outstanding common shares at $1.20 apiece.
On closing of the transaction, which is expected on or around December 13, Agnico Eagle and G4G, which will be renamed White Gold Corp, will enter into an investor rights agreement.
This will give Agnico Eagle the right to participate in certain equity financings to maintain its 19.93% interest, as well as the right to nominate one person to the board of directors.
The agreement will also give G4G the right to designate a buyer in the event that Agnico Eagle wishes to sell more than 5% of its common shares.
Further, Agnico Eagle will be subject to a two-year standstill, which will prohibit it from taking certain actions, including acquiring more than 19.99% of the issued and outstanding common shares, subject to certain exceptions.
G4G has an option to acquire 12 301 claims across 21 properties, covering about 249 000 ha and representing about 30% of the White Gold district in the Yukon Territory from Wildwood Exploration and G4G’s chief technical adviser Shawn Ryan.