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Home > News > Maple Gold closes joint...

Maple Gold closes joint venture transaction with Agnico Eagle Mines

Feb 4, 2021


"The closing represents an exciting new chapter for Maple Gold as we move forward on the Douay Project with the best joint venture partner we could ask for," stated Matthew Hornor, Maple Gold's President and CEO. "We are excited to kick off the JV's maiden drill campaign shortly to expand the established gold resources at Douay and will continue to test regional targets for new discoveries, all with the aim of establishing an exciting new gold district in Quebec's Abitibi Gold Belt. We also look forward to building on our relationships with the local communities around the combined land package, including the First Nations."

Maple Gold Mines Ltd. has closed a previously announced 50-50 joint venture transaction with Agnico Eagle Mines Limited, which combines Maple Gold's Douay Project and Agnico's Joutel Project into a consolidated land package of approximately 400 km². The closing of the Transaction follows the signing of a Binding Term Sheet between Maple Gold and Agnico that was previously announced on October 8, 2020.

JV Highlights:

  • Maple Gold contributed its 357 km² Douay Gold Project, which has an established National Instrument 43-101 mineral resource estimate of 8.6 million tonnes grading 1.52 g/t Au for 422,000 contained ounces of gold in the Indicated category and 71.2 million tonnes grading 1.03 g/t Au for 2.35 million contained ounces of gold in the Inferred category using a cut-off grade of 0.45 g/t Au for open-pit Mineral resources and a cut-off grade of 1.0 g/t Au for underground Mineral Resources;1
     
  • Agnico contributed its 39 km² Joutel Project, which hosted Agnico's past-producing Telbel mine (reclamation area and associated liabilities are excluded from the JV);
     
  • Agnico to provide an aggregate of C$18 million of funding over four years for exploration expenditures at the Douay and Joutel properties, which will be allocated based on management committee budgets. Agnico and Maple Gold will contribute proportionately for expenditures thereafter;
     
  • Agnico and Maple to jointly fund an additional C$500,000 in exploration of VMS targets located on the western portion of the Douay Project;
     
  • Agnico to contribute its technical expertise to the JV through Joint Operatorship (Fred Speidel, Maple Gold's VP, Exploration will act as the initial General Manager of the JV);
     
  • Agnico to support Maple Gold in its pursuit of third-party project financing for the development phase; and
     
  • Maple Gold and Agnico have each retained a 2% NSR on the property that they contributed to the JV, each with aggregate buyback provisions of C$40 million.

As previously disclosed, Maple Gold and Agnico share a common vision for realizing the exploration potential at the consolidated Douay and Joutel property package. With close collaboration and by employing modern approaches to exploration, management believes there is strong potential for expanded mineral resources and new gold discoveries across the district-scale property package.

 



Tags: Quebec / Deals & Financial / Gold / All Articles