AGNICO EAGLE INVESTS IN ATEX RESOURCES: EXPANDING ITS PORTFOLIO

Agnico Eagle Mines Limited (NYSE: AEM, TSX: AEM), a leading gold mining company, has announced an investment in ATEX Resources Inc. (TSXV: ATX), a copper-gold exploration company based in Chile. The investment aligns with Agnico Eagle's strategy of strategic equity investments in projects with high geological potential, providing exposure to an early-stage exploration project in an established mining jurisdiction.

The investment, totaling US$40 million (approximately C$55.2 million), consists of the subscription for 33,869,939 units of ATEX at a price of C$1.63 per unit. Each unit comprises one common share and one-half of one common share purchase warrant, exercisable at C$2.50 for a period of five years. Agnico Eagle will own approximately 13.21% of the issued and outstanding common shares on a non-diluted basis and approximately 18.59% on a partially-diluted basis, assuming the exercise of the warrants.

Upon closing, Agnico Eagle and ATEX will enter into an investor rights agreement, granting Agnico Eagle certain rights to maintain its pro-rata ownership and nominate individuals to ATEX's board of directors, provided it maintains certain ownership thresholds. Agnico Eagle is acquiring the shares and warrants for investment purposes and may, depending on market conditions and other factors, acquire additional securities or dispose of some or all of its holdings in ATEX.

This investment in ATEX Resources offers Agnico Eagle several potential benefits and risks. The primary benefit is exposure to an early-stage exploration project in a jurisdiction with established mining infrastructure and a favorable investment climate. Additionally, the investment aligns with Agnico Eagle's strategy of strategic equity investments in high-potential projects, complementing its portfolio of internal growth projects.

However, there are also risks associated with investing in an early-stage exploration company. These include the uncertainty of exploration results, the potential for delays in project development, and the volatility of commodity prices. Agnico Eagle will need to carefully manage these risks and monitor ATEX's progress to ensure the investment remains a valuable addition to its portfolio.

In conclusion, Agnico Eagle's investment in ATEX Resources is a strategic move that aligns with the company's long-term goals and complements its existing portfolio of projects. While there are risks associated with investing in an early-stage exploration company, Agnico Eagle's experience in the mining industry and its track record of successful investments suggest that this investment has the potential to generate significant value for shareholders. As Agnico Eagle continues to focus on its internal growth projects, this investment in ATEX Resources further enhances its position in the mining industry.