The share price of gold junior Maple Gold Mines rose 18% higher on Wednesday, as the company closed a C$6.2-million strategic investment from gold producer Agnico Eagle.
The investment was completed at C$0.239 a unit, and gave Agnico about 12.8% of Maple’s issued and outstanding common shares.
Maple’s stock fetched C$0.33 a share on the Canadian Venture Exchange on Wednesday – nearly double the value that the junior traded before the Agnico joint venture (JV) and strategic investment was announced on October 8.
The two companies’ partnership includes C$18-million in exploration funding from Agnico and will combine Maple's Douay project and Agnico's Joutel project into a consolidated property package in the Abitibi gold belt of Quebec.
"With the closing of Agnico's investment, Maple Gold's cash balance is now more than C$12-million which, when combined with the C$18-million in JV funding, results in a strong capital position to be directed at exploration, development and new corporate growth opportunities," stated Maple CEO Matthew Hornor.
Prior to the investment, Agnico owned 4.4% of Maple issued and outstanding common shares.