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Maple Gold Closes C$6.2 Million Strategic Investment from Agnico Eagle

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Maple Gold Closes C$6.2 Million Strategic Investment from Agnico Eagle

 

 

 

 

 

Maple Gold Mines Ltd. (TSX-V: MGM) (OTCQB: MGMLF) (FSE: M3G)  is pleased to report that it has closed the previously announced strategic investment from Agnico Eagle Mines Limited which was completed at a premium to market at C$0.239 per unit for gross proceeds of approximately C$6.2 million. Agnico now owns approximately 12.8% of Maple Gold’s issued and outstanding common shares.

 

As announced in the Company’s press release on October 8, 2020, the strategic investment is part of the new strategic partnership between Maple Gold and Agnico which includes C$18 million in exploration funding from Agnico and will combine Maple Gold’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 joint venture funding, results in a strong capital position to be directed at exploration, development and new corporate growth opportunities,” stated Matthew Hornor, CEO of Maple Gold Mines. “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.”

 

Strategic Investment

 

Upon closing of the strategic investment, completed via private placement on October 13, 2020, the Company issued a total of 25.84 million units (“Units”) to Agnico. Each Unit was purchased at C$0.239 for gross proceeds of approximately C$6.2 million.

 

Each Unit is comprised of one common share of Maple Gold and one common share purchase warrant of Maple Gold. Each Warrant entitles the holder to acquire one Common Share at a price of C$0.34 for a period of three years following October 13, 2020. The Warrants provide that, beginning two years from October 13, 2020, if the price of the Common Shares on the TSX Venture Exchange exceeds C$0.60 per Common Share for at least 20 consecutive trading days, Maple Gold shall have the right to accelerate, by notice to Agnico, the expiry date of the Warrants to 30 calendar days after the date of such notice (such that Agnico may either exercise all or a portion of the Warrants in such 30-day period, or failing such exercise, any unexercised Warrants would expire).

 

Prior to this investment, Agnico owned 4.4% of Maple Gold’s issued and outstanding Common Shares. With the closing of this investment, Agnico now owns approximately 34.6 million Common Shares and approximately 25.84 million Warrants, representing approximately 12.8% of the issued and outstanding Common Shares and 19.9% of the issued and outstanding common shares on a partially diluted basis. The securities issued to Agnico will be subject to a four-month hold period, in accordance with applicable securities laws.

 

Maple Gold’s total issued and outstanding share balance now stands at 292,966,948.

 

About Maple Gold

 

Maple Gold Mines Ltd. controls the 357-square-kilometre Douay Gold Project located within the prolific Abitibi Greenstone Gold Belt in northern Quebec, Canada. The Project has an established National Instrument 43-101 gold resource (RPA 2019) of 422,000 ounces in the Indicated category (8.6Mt grading 1.52 g/t Au) and 2.35 million ounces in the Inferred category (71.2Mt grading 1.03 g/t Au) with significant potential for resource expansion and new discoveries. On October 8, 2020, the Company announced the signing of a binding term sheet with Agnico that contemplates the formation of a 50-50 joint-venture, which will combine Maple’s Douay Project and Agnico’s Joutel Project into a consolidated joint property package.

 

Posted October 14, 2020

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