Mining News
Agnico Eagle invests C$6.2 million in Maple Gold to explore Quebec project
(Kitco News) - Agnico Eagle Mines Ltd. continues to see potential in Quebec's prolific Northern mining belt as it invests C$6.2 million in a junior mining company.
Thursday, the world's seventh-largest gold producer by market cap, announced a non-brokered private placement deal with Maple Gold Mines Ltd. The deal is a mix of shares of the junior explorer and warrants.
Currently, Agnico owns 4.4% of Maple Gold, and after the private placement is closed with an increase in shares and warrents, it will own a 12.84% stake, the company said.
In addition, the two companies are looking at creating a 50-50 joint venture agreement to combine Maple Gold's Douay Project and Agnico's Joutel Project.
"The Douay Project and Joutel Project are adjacent properties located in the Abitibi region of Quebec, and the Joutel Project hosted Agnico's past-producing Telbel mine," Agnico said in its press release.
Under the joint venture agreement, Agnico will fund $18 million in exploration over a four-year period. The two companies will also have a 2% royalty agreement.
"The strategic partnership with Agnico marks a transformational milestone for Maple Gold and supports the opportunity in front of us. Agnico is one of the world's premier gold mining companies. Their involvement along with the Joutel contribution will create a highly prospective land package that has the potential to form an exciting new gold district in Quebec's Abitibi Gold Belt," said Matthew Hornor, president and CEO of Maple Gold.
