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Maple Gold Announces Joint Venture Partnership and Strategic Investment with Agnico Eagle
Montreal, Quebec--(Newsfile Corp. - October 8, 2020) - Maple Gold Mines Ltd. (TSXV: MGM) (OTC...
About this update from Maple Gold Mines Ltd
[{"type":"text","content":"Maple Gold Announces Joint Venture Partnership and Strategic Investment with Agnico EagleMontreal, Quebec--(Newsfile Corp. - October 8, 2020) - Maple Gold Mines Ltd. (TSXV: MGM) (OTCQB: MGMLF) (FSE: M3G) (\"Maple Gold\" or the \"Company\") is pleased to announce the signing of a Binding Term Sheet with Agnico Eagle Mines Limited (\"Agnico\") that contemplates a 50-50 joint venture (\"JV\"), which will combine Maple Gold's Douay Project and Agnico's Joutel Project into a consolidated joint property package (see Figure 1). Agnico has also agreed to complete a strategic investment into Maple Gold (see Strategic Investment section below) at approximately C$0.24 per unit for gross proceeds of approximately C$6.2 million (collectively, the \"Transaction\").The strategic partnership brings together two groups with a common focus on exploration, discovery and development in the Abitibi greenstone belt. Maple is contributing its Douay Project and Agnico is contributing its Joutel Project, a property that hosted its past-producing Telbel mine. Together, the groups plan to advance on exploration to test new targets and expand the known mineralization. Data review, compilation and re-interpretation of the adjacent properties together using modern approaches offer unique opportunities to evaluate the camp as a whole.Highlights of the Transaction are summarized below:Agnico to contribute its 39 km² Joutel Project, which hosted Agnico's past-producing Telbel mine (reclamation area and associated liabilities are excluded from the JV);Agnico to make strategic investment at a premium to bring basic share ownership to 12.8% and partially-diluted ownership to 19.9%;Agnico to solely fund C$18 million in exploration over a four-year term;Agnico and Maple to jointly fund an additional C$500,000 in exploration of VMS targets on the western portion of the Douay Project;Agnico to contribute its technical expertise to the JV through Joint Operatorship;Agnico to support Maple Gold in its pursuit of third-party project financing for the development phase; andOn formation of the JV, Maple Gold and Agnico will each be granted a 2% NSR on the property that they contribute to the JV, each with aggregate buyback provisions of $40 million.Matthew Hornor, Maple Gold's President and CEO, commented: \"The strategic partnership with Agnico marks a transformation...