Agnico Eagle Invests in Maple Gold Mines

Agnico Eagle Mines Ltd. has agreed to purchase 25.84 million units of Maple Gold Mines Ltd. for $0.239 per unit for total consideration of approximately $6.175 million. Each unit is comprised of one common share of Maple and one common share purchase warrant of Maple. Closing is expected to occur on or about October 9.

Agnico Eagle and Maple have entered into a binding term that will considers the formation of a 50/50 joint venture, which will combine Maple’s Douay project and Agnico Eagle’s Joutel project into a consolidated joint property package. The Douay project and Joutel project are adjacent properties located in the Abitibi region of Quebec, and the Joutel project hosted Agnico’s past-producing Telbel mine.

According to the binding term sheet, Agnico Eagle will fund $18 million in exploration expenses over a four-year period; Agnico Eagle and Maple will jointly fund an additional $500,000 in exploration of VMS targets on the western portion of the Douay Project; and both will be granted a 2% NSR on the property that they contribute to the joint venture, each with aggregate buyback provisions of US$40 million.

Agnico Eagle currently owns 11,764,706 common shares, representing approximately 4.4% of the issued and outstanding common shares on a non-diluted basis. Upon completion, Agnico Eagle will own approximately 12.84% of the issued and outstanding common shares on a non-diluted basis and 19.9% of the issued and outstanding common shares on a partially diluted basis.

As featured in Womp 2020 Vol 11 -