Agnico-Eagle Mines Completes Debenture Offering

On February 15, 2002, Agnico-Eagle Mines Limited completed an offering of US$143.75 million principal amount of 4.5 per cent convertible subordinated debentures due February 15, 2012. The issue included US$125 million principal amount of debentures on a bought deal basis and US$18.75 million principal amount of debentures sold pursuant to an option granted by Agnico to the underwriters.

The debentures are convertible into common shares of Agnico, at the option of the holder, at any time at a conversion price of US$14 per share. Agnico may redeem all or a portion of the debentures at any time on or after February 15, 2006. The redemption price, maturity amount and interest payments on the debentures are payable in common shares at the option of Agnico.

Davies Ward Phillips & Vineberg LLP acted as counsel for Agnico, with a team comprised of Patricia Olasker, Robert Murphy, Brian Calalang and Caroline Abela (securities) and Geoffrey Turner (tax) in Toronto, and Guy Lander and Charles Malone (securities) in New York. Troutman Sanders Mays & Valentine LLP in Virginia acted as U.S. counsel, with a team comprised of David Levenson (securities) and Bill Fendley (tax).

The underwriting syndicate was led by Scotia Capital Inc., and included National Bank Financial Inc., TD Securities Inc., CIBC World Markets Inc. and Research Capital Corporation. Lang Michener acted as Canadian counsel to the underwriters, with a team comprised of Philippe Tardif, John Conway and Lisa Erdos (corporate finance/securities), Kalle Soomer, Q.C., (tax) and Kevin von Bargen (lending).

Shearman & Sterling acted as U.S. counsel to the underwriters, with a team that included Brice Voran, Richard Crofts, Jennifer Mazin and Stephen Centa in Toronto.