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GOLDEX MINES LIMITED AND AGNICO-EAGLE MINES LIMITED IN DISCUSSIONS

 TORONTO, Sept. 29 /PRNewswire/ -- Goldex Mines Limited ("Goldex") and Agnico-Eagle Mines Limited ("Agnico-Eagle") (NASDAQ NMS: AEGEF) jointly announced today that they have entered into discussions concerning an amalgamation whereby shareholders of Goldex (other than Agnico-Eagle) would exchange their common shares for common shares of Agnico-Eagle at a price to be agreed between the two companies. Upon completion of the amalgamation, Goldex would be wholly owned by Agnico- Eagle and the public shareholders of Goldex would be shareholders of Agnico-Eagle.
 All of the directors of Goldex, other than Glen Kean, are also on the board of Agnico-Eagle. Accordingly, Goldex today appointed Mr. Kean to serve as the sole independent director of the company to consider the proposal and to report to the board. Mr. Kean indicated that he would retain an independent financial advisor to prepare a formal valuation of Goldex's common shares in accordance with Ontario Securities Commission Policy 9.1.
 In addition, a committee composed of independent directors of Agnico-Eagle has been appointed in connection with the amalgamation. Merrill Lynch is acting as financial advisor to Agnico-Eagle.
 Once agreement is reached between Goldex and Agnico-Eagle, it will be submitted to the shareholders of Goldex for approval (including separate approval by the minority shareholders) at a special meeting proposed to be held in late November or early December 1993. The transaction will also be subject to any necessary regulatory approvals.
 Although pricing parameters have not been discussed, Agnico-Eagle does not expect the dilution resulting from the issue of its common shares to Goldex shareholders to be material. Additional details of the proposed transaction are not available at this time.
 Goldex is a gold exploration and development corporation, managed by the senior gold producer Agnico-Eagle. Agnico-Eagle owns 7,348,744 common shares of Goldex, representing 56.4 percent of the total 13,022,964 shares outstanding.
 -0- 9/29/93
 /CONTACT: Paul Penna, 416-947-1212, for Agnico-Eagle Mines Limited and Goldex Mines Limited/
 (AEGEF)


CO: Agnico-Eagle Mines Limited; Goldex Mines Limited ST: Ontario IN: MNG SU: TNM

LG -- NY049 -- 6852 09/29/93 13:11 EDT
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Publication:PR Newswire
Date:Sep 29, 1993
Words:344
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