Agnico, Dumagami merger plan given nod by directors

Pending approval of Dumagami shareholders, Agnico-Eagle Quebec, a wholly owned subsidiary of Agnico-Eagle, will amalgamate with Dumagami.

Under the proposed merger, Dumagami shareholders are being offered 1.7 Agnico-Eagle shares for each Dumagami share held at the time of the amalgamation.

Dumagami shareholders are being invited to vote Dec 19 on the proposed amalgamation, which has been opposed by Quebec businessman Jacques Forget of Montreal.

Forget, who holds a 16% stake in Dumagami through his Montreal-based investment firm Invesfor, is pushing for a 2-Agnico-Eagle-for- 1-Dumagami-share exchange deal.

The record date for Dumagami shareholders, entitled to receive notice and vote at the meeting, is Nov 14 and proxy material is expected to be mailed out two days later.

Agnico-Eagle is proposing that Dumagami warrants be replaced by warrants entitling the holders to receive 1.7 shares of Agnico-Eagle once the warrants are exercised.

The warrants, exercisable at $16 for every 1.7 Agnico-Eagle shares, will expire April 16, 1990. Dumagami warrant holders of record Nov 14 who exercise their warrants will be entitled to vote at the special shareholders’ meeting, according to Agnico-Eagle.

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