- Maple Gold Mines (MGM) has successfully closed a previously announced C$6.2 million investment from its new joint venture partner Agnico Eagle Mines
- The company issued 25.84 million units to Agnico Eagle at a price of 23.9 cents each, comprised of one common share and one common share purchase warrant
- Each warrant will be exercisable at a price of 34 cents per share for a period of three years
- The investment follows the announcement of a joint venture partnership on October 8, under which the two companies have agreed to merge their neighbouring Douay and Joutel projects
- Maple Gold Mines (MGM) is currently up 8.93 per cent and is trading 30 cents per share
Maple Gold Mines (MGM) has successfully closed a previously announced C$6.2 million investment from its new joint venture partner Agnico Eagle Mines.
Under the terms of the placement, the Montreal-based mining company issued a total of 25.84 million units to TSX-listed Agnico Eagle at a price of 23.9 cents each.
These units are comprised of one common share in Maple Gold and one common share purchase warrant, exercisable at a price of $0.34 per share over a period of three years.
Prior to the investment, Agnico Eagle owned 4.4 per cent of Maples Gold’s issued and outstanding shares. With the placement now complete, this holding has been bumped to 12.8 per cent, or roughly 19.9 per cent on a partially diluted basis.
Matthew Hornor, CEO of Maple Gold Mines, said the investment provides a strong balance sheet to carry out future work.
“With the closing of Agnico’s investment, Maple Gold’s cash balance is now more than $12 million which, when combined with the $18 million in joint venture funding, results in a strong capital position to be directed at exploration, development and new corporate growth opportunities.
“Together with Agnico, we are committed to advancing the consolidated Douay-Joutel property towards significant resource expansion with the aim of establishing an exciting new gold district in the Abitibi,” he added.
It follows the release of an earlier announcement on October 8, under which the two companies have agreed to merge their neighbouring Douay and Joutel projects in the Abitibi Greenstone Belt of Quebec.
The partnership is expected to bring about a common focus on exploration, discovery and development at a consolidated land package that hosts the past-producing Tell mine.
Maple Gold Mines (MGM) is currently up 8.93 per cent and is trading at 30 cents per share at 10:59am EDT.