Agnico-Eagle, Mentor merge

Agnico-Eagle Mines (AGE-T) has combined with Toronto-based Mentor Exploration & Development (MV-V) and will retain its original name.

Agnico-Eagle acquired the remaining 50.5% of Mentor it did not already own, the share exchange ratio being 0.21 of an Agnico share for each Mentor share. Under the deal, 369,348 Agnico shares are being issued.

Mentor has a 22.6% stake in Sudbury Contact Mines (SUD-T), with Agnico holding 59%. Mentor also has interests in exploration projects elsewhere in Canada and in Nevada.

Agnico recently commissioned its Penna shaft at the newly expanded LaRonde mine near Val d’Or, Que. At the end of 2000, LaRonde had proven and probable reserves of 33.6 million tons grading 0.1 oz. gold and 2.34 oz. silver per ton, plus 0.32% copper and 4.4% zinc. When this is combined with an additional resource of 25.3 million tons, LaRonde’s total reserves and resources amount to 59 million tons of 0.13 oz. gold, 1.7 oz. silver, 0.5% copper and 2.68% zinc.

Known mineralization extends to almost 10,000 ft. below surface and remains open in all directions. Most of the existing reserves are in the 20 North zone.