- Maple Gold Mines (MGM) has signed a joint venture deal with Agnico Eagle Mines to merge the companies’ neighbouring Douay and Joutel projects
- Each company will hold a 50 per cent stake in the partnership, which would allow for collaborative exploration work over the two properties
- Agnico Eagle will also solely fund C$18 million in exploration expenses over a four-year period
- Separately, Agnico Eagle will acquire a $6.2 million stake in Maple Gold Mines, bringing its total interest to 12.8 per cent
- Maple Gold Mines (MGM) is currently up 29.41 per cent and is trading at 22 cents per share
Maple Gold Mines (MGM) has signed a joint venture deal with Agnico Eagle Mines to merge the companies’ neighbouring Douay and Joutel projects.
The strategic partnership would bring about a common focus on exploration, discovery and development within the Abitibi Greenstone Belt of Quebec, at a consolidated land package that hosts the past-producing Tell mine.
While the two companies have a three-month period with which to formulate a definitive agreement, Agnico Eagle is expected to contribute C$18 million in exploration expenses over a four-year period.
In addition, both Agnico Eagle and Maple Gold will retain a two per cent net smelter royalty on the properties they contribute. The first one per cent of the royalty on each property may be acquired by the other party for a fee of $15 million, while the remaining one per cent may be acquired for a further $25 million.
Matthew Hornor, President and CEO of Maple Gold Mines, said the partnership with Agnico Eagle represents a transformational milestone for the company.
“Agnico is one of the world’s premier gold mining companies. Their involvement along with the Joutel contribution will create a highly prospective land package that has the potential to form an exciting new gold district in Quebec’s Abitibi Gold Belt,” he added.
In addition to the joint venture partnership, Agnico Eagle has also agreed to make a $6.2 million investment in Maple Gold.
Under the terms of a private placement, Maple Gold will issue 25.84 million units to Agnico Eagle at a price of $0.24 each. These units will consist of one common share and one common share purchase warrant, exercisable at a price of $0.34 per share over a period of three years.
Upon completion of the placement, Maple Gold is expected to have more than $12 million on its balance sheet, while Agnico Eagle’s holding in the company will be increased to approximately 12.8 per cent.
Maple Gold Mines (MGM) is currently up 29.41 per cent and is trading at 22 cents per share at 1:35pm EDT.