Agnico Eagle and Maple to form JV in Quebec

8th October 2020 By: Mariaan Webb - Creamer Media Deputy Editor Online

Agnico Eagle and Maple to form JV in Quebec

Maple president and CEO Matthew Hornor

Gold producer Agnico Eagle on Thursday announced an investment in TSX-V-listed Maple Gold Mines and the planned creation of a joint venture (JV) to combine two adjacent projects into a consolidated joint property package in the Abitibi region of Quebec.

The news sent Maple’s share price up 30% to C$0.22 a share.

Dual-listed Agnico would subscribe for 25 838 821 units of Maple in a non-brokered private placement at C$0.239 a unit for total consideration of about C$6.18-million.

Upon closing, Agnico’s shareholding in Maple would increase from 4.4% to 12.84% on a non-diluted basis and 19.9% on a partially-diluted basis.

Regarding the 50:50 JV, Agnico said the contemplated venture would combine Maple's Douay project and its Joutel project, which hosted the past-producing Telbel mine. 

Agnico would fund C$18-million in exploration expenses over a four-year period, the companies would jointly fund an additional C$500 000 in exploration of VMS targets on the western portion of the Douay project and they would each be granted a 2% net smelter royalty on the property that they contribute to the JV, each with aggregate buyback provisions of $40-million.

The strategic investment by Agnico brings Maple Gold's cash balance to more than C$12-million which, when combined with the C$18-million in JV funding, would place the smaller company in a strong position to advance exploration, development and new corporate growth opportunities, Maple president and CEO Matthew Hornor commented in a statement.

"The strategic partnership with Agnico marks a transformational milestone for Maple Gold and supports the opportunity in front of us,” he said.