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SUDBURY CONTACT MINES, LIMITED ANNOUNCES "FLOW-THROUGH" PRIVATE PLACEMENT OF COMMON SHARES

 TORONTO, Jan. 5 /PRNewswire/ -- Sudbury Contact Mines, Limited ("Sudbury") has announced that it has entered into a "flow-through" private placement agreement with Agnico-Eagle Mines Limited ("Agnico-Eagle") pursuant to which Sudbury will, subject to regulatory approval, issue 533,333 of its common shares to Agnico-Eagle for aggregate proceeds of approximately $2 million.
 Sudbury has agreed to use all such proceeds for the purpose of incurring Canadian exploration expenses in connection with its exploration activities in Ontario and Quebec and to renounce to Agnico-Eagle the full amount of such expenses for income tax purposes. A portion of such proceeds will be used to fund a follow-up drilling program in early 1994 on Sudbury's recently announced gold discovery on its Diamond Lake Properties. As a result of the private placement, Agnico-Eagle's shareholding in Sudbury will increase from 1,065,744 common shares (or approximately 13 per cent of the outstanding shares) to 1,599,077 common shares (or approximately 18.3 per cent of the outstanding shares). Two associated companies of Agnico-Eagle also own 3,696,982 and 143,000 common shares of Sudbury, respectively (or an aggregate of approximately 47 per cent of the outstanding shares).
 Sudbury Contact Mines, Limited is a gold and diamond mining exploration and development company with properties located primarily in northeastern Ontario and Quebec.
 -0- 1/5/94
 /CONTACT: Paul Penna, president of Sudbury Contact Mines, Limited, 416-947-1212/
 (SUD. AGE. AEAGF)


CO: Sudbury Contact Mines, Limited; Agnico-Eagle Mines Limited ST: Ontario IN: MNG SU:

MP-SP -- NY026 -- 9280 01/05/94 10:51 EST
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Publication:PR Newswire
Date:Jan 5, 1994
Words:256
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