TSX-V-listed Maple Gold Mines has entered into an option agreement with Globex Mining to acquire the Eagle mine, as part of a plan to consolidate the past-producing, high-grade Eagle-Telbel underground mines at the Joutel project, in Quebec.
Joutel is a 50:50 joint venture (JV) between Maple Gold Mines and Agnico Eagle.
“Securing an option to acquire Eagle is highly strategic as we have strong reason to believe that high-grade gold mineralisation remains at the entire past-producing Eagle-Telbel mine area," stated president and COE Matthew Hornor.
"Consolidating this ground provides significant exploration upside through potential near-mine extensions to the historic underground workings. We will apply a similar approach that we have been using at Telbel and Douay and leverage the JV's access to historical drill data and mining records to expand our 3D model and targeting along this entire trend."
The Eagle mine closed in 1993 and limited exploration activity has since been conducted.
Maple Gold can acquire a 100% interest in Eagle by completing payments to Globex totalling C$1.2-million in cash and shares over five years and incurring exploration expenditures on the property of C$1.2-million over a four-year period, which can be accelerated at Maple Gold's discretion.
Globex will retain a 2.5% gross metal royalty, which is subject to a right of first refusal and can be reduced to 1.5% in consideration for a cash payment of C$1.5-million.