Gold investors finally saw the first significant sign that the global credit crunch is starting to ease in a recent bout of Agnico Eagle news.
Canadian gold producer Agnico Eagle Mines Ltd [NYSE: AEM, TSX: AEM] announced that the company will complete a private placement of 8 million units at a price of US$31.50 per unit for total proceeds of $252 million. Each unit will consist of one common share of Agnico Eagle and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of the company, at a price of US$47.25 per share, at any time during the five-year term of the warrant. Agnico Eagle said that the company intends to use the net proceeds of the private placement for mine development and related capital expenditures, as well as for general corporate purposes.