Alexandria Minerals Corporation

Alexandria Minerals Corporation

March 23, 2010 09:30 ET

Alexandria Announces $1,820,000 Equity Investment by Agnico-Eagle Mines Limited

TORONTO, ONTARIO--(Marketwire - March 23, 2010) - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D) is pleased to announce that it has closed a 9,100,000 unit ("Unit") investment (the "Investment") by Agnico-Eagle Mines Limited ("Agnico-Eagle"), at a price of $0.20 per Unit, for an Investment of $1,820,000, amounting to an approximate 9.9% basic equity stake in Alexandria Minerals.

"We are excited to have Agnico-Eagle as our largest shareholder," said Eric Owens, President and CEO of Alexandria Minerals. "Agnico-Eagle is a successful gold miner and the heart of its operations is close to us in the Val d'Or area. Its investment at a premium is a powerful endorsement of the potential of our projects, and we look forward to initiating our relationship with Agnico-Eagle and benefiting from its expertise."

Alexandria Minerals' Cadillac Break property group in Val d'Or is located just 8 km east of Agnico-Eagle's underground, bulk tonnage Goldex Mine, where it operates a concentrating facility. Elsewhere in the region, Agnico-Eagle also operates the Lapa Mine, as well as the large La Ronde gold-zinc-copper mine.

Map showing the location of Alexandria Minerals' Cadillac Break Property Group and Siscoe East Property in Val d'Or, as well as several other mines in the area including Agnico-Eagle's Goldex Mine:

The proceeds from the Investment will be used to fund corporate and exploration activities, primarily building on its current drilling programme underway at Akasaba, where it has had considerable recent success, as well as expanding the Orenada gold deposit, where Alexandria has identified a Measured and Indicated resource of 361,000 ounces and an additional 175,000 ounces in the Inferred Resources category.

The Investment consists of 9,100,000 Units, where each Unit consists of one common share of Alexandria Minerals and one common share purchase warrant. Each whole warrant entitles Agnico-Eagle to acquire one additional common share at a price of $0.21 for a period of 24 months from closing. The securities issued under the Investment will be subject to a hold period of four months and one day from the date of closing, being July 24, 2010. Agnico-Eagle also has the right to participate in future financings to maintain its equity position in Alexandria Minerals.

Alexandria Minerals Corporation is a Toronto–based mineral exploration and development company, currently focused on the exploration for precious metals on mineral properties located in Northern Ontario and Quebec. The company's management has extensive global experience with small to large mining companies, from grass-roots exploration to the exploitation of mineral deposits. The company is a reporting issuer in the provinces of British Columbia, Alberta and Ontario.

This press release, required by applicable Canadian laws, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

WARNING: The Company relies upon litigation protection for "forward-looking" statements. This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of up-coming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Alexandria Minerals Corporation relies upon litigation protection for forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Alexandria Minerals Corporation
    Andreas Curkovic
    Investor Relations
    (416) 577-9927
    Alexandria Minerals Corporation
    Eric Owens