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Maple Gold Announces Joint Venture Partnership and Strategic Investment with Agnico


On October 8, 2020, Maple Gold Mines Ltd. and Agnico Eagle Mines Limited announced concurrent transactions consisting of the following:

  • an agreement in respect of a strategic investment of Agnico into Maple Gold by way of private placement of 25,838,821 Maple Gold units at a price of $0.239 per unit for gross proceeds of approximately $6.2 million, with each unit comprised of one common share and one common share purchase warrant of Maple Gold; and
  • a binding term sheet for a 50-50 joint venture between Maple Gold and Agnico, which will combine Maple Gold’s Douay Project and Agnico’s Joutel Project into a consolidated joint property package. The binding term sheet provides, among other things, that (i) Agnico will fund $18 million in exploration expenses over a four-year period; (ii) Agnico and Maple Gold will jointly fund an additional $500,000 in exploration of VMS targets on the western portion of the Douay Project; and (iii) Agnico and Maple Gold will each be granted a 2% NSR on the property that they contribute to the joint venture, each with aggregate buyback provisions of US$40 million.

On October 13, 2020, the parties completed the strategic investment.  Meanwhile, the joint venture transaction is subject to a 3 month period by which the parties have agreed to use good faith efforts to settle joint venture documents and due diligence.

Cassels acted for Maple Gold with a deal team that included David Redford and Samantha Prest (Securities and Mining).

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