GOTHENBURG, Sweden, Sept. 29, 2005 (PRIMEZONE) -- Agnico-Eagle Mines Limited ("Agnico-Eagle") on May 12, 2005 announced a recommended public offer to the shareholders of Riddarhyttan Resources AB ("Riddarhyttan" or the "Company") for all outstanding shares of Riddarhyttan not already owned by Agnico-Eagle.
On September 26, 2005 Agnico-Eagle announced that, at the termination of the extended offer period, shareholders representing 43 % of the outstanding shares and voting rights had accepted the bid. Together with the shares currently owned by Agnico-Eagle (14%) this represents an aggregate of approximately 57.0% of the outstanding shares and voting rights of Riddarhyttan.
In these circumstances Agnico-Eagle has decided to further extend the offer period to 4:00 p.m. CET (10:00 a.m. EST) on October 11, 2005. Also the 90% condition in the bid has been changed to a condition that Agnico Eagle will reach an ownership of at least 50.1% of the outstanding Riddarhyttan shares.
The Board of Riddarhyttan is very supportive of Agnico-Eagle's decision. In response to a number of questions recently raised by our shareholders, the Board has decided to make the following statement and explanations:
- In the offer, 0.1137 shares in Agnico-Eagle were being offered
for each Riddarhyttan share.
- On May 12, 2005, the Board of Directors* of Riddarhyttan issued
its support for the Agnico-Eagle offer by recommending acceptance
of the offer to Riddarhyttan's shareholders. The Board wants to
underline that it continues to believe that the Agnico-Eagle
offer is very favourable for Riddarhyttan's shareholders.
- Assuming all conditions of the offer continue to be satisfied,
Agnico-Eagle's intention is to take up all the Riddarhyttan
shares tendered to the offer at the end of this extension period.
- Agnico-Eagle's bid is open for acceptances, and withdrawals,
during the new extended acceptance period.
- If Agnico-Eagle becomes owner of at least 50.1% of the
outstanding Riddarhyttan shares on October 11, 2005 (4:00 p.m.
CET) Riddarhyttan intends to convene an extra shareholders
meeting to change the composition of the Board directors
- Provided that all conditions of the offer are satisfied,
settlement is expected to commence on or about October 18, 2005.
- On May 11, 2005, the last trading day before the announcement of
the offer, the closing price per Riddarhyttan share on the
Stockholm Stock Exchange was SEK 8.05. Based upon the closing
price of Agnico-Eagle on the New York Stock Exchange and exchange
rates on September 23, 2005, the offer is worth SEK 13.19 per
Riddarhyttan share, representing a premium of 63.9%.
The Board believes that Riddarhyttans shareholders carefully should review the materials provided to them by Agnico-Eagle. In these materials, Agnico-Eagle has stated many benefits that shareholders will receive if accepting the offer and becoming Agnico-Eagle shareholders.
- Alain Blackburn and Eberhard Scherkus, who are officers of Agnico-Eagle and members of the Board of Riddarhyttan, have not participated in any discussions or decisions by the Board in relation to the recommendation.
Riddarhyttan Resources AB is an exploration company with occurrences of precious metals in the Nordic Region of Europe. The primary business idea is, by means of exploration and acquisition acquire new occurrences, which through detailed exploration can be advanced to economic resources. At the Suurikuusikko deposit (Finland), which is Riddarhyttan's most advanced project measured resources are estimated to 2.5 Mt grading 6.2 grams of gold per tonne (0.50 million ounces). Indicated resources amount to 9.3 Mt grading 5.1 grams of gold per tonne (1.53 million ounces) and inferred resources amount to 12.5 Mt grading 4.2 grams of gold per tonne (1.70 million ounces) (cut off 2 g/t).