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Maple Gold Mines Ltd. (TSXV:MGM) (“Maple Gold” or the “Company”) has announced that it has signed an agreement with Agnico Eagle Mines Limited (“Agnico“) under which the parties intend to complete a restructuring transaction (the “Restructuring Transaction”) that will result in Maple Gold obtaining 100% ownership interest in the Douay Gold Project (the “Project”). Maple Gold will grant Agnico an option to acquire 50% of the Project upon a construction decision in return for 200% of the the amount of expenditures incurred by Maple Gold in respect of the Project plus C$12 million.
This transformative, value-unlocking transaction represents a win-win for both parties that paves the way for the continued advancement of the Douay and Joutel gold projects.
Additionally, Maple Gold has announced that it has completed a private placement of flow-through common shares of the Company for aggregate gross proceeds of approximately C$4 million (the “Offering”). Subsequent to the completion of the Offering, Agnico acquired the common shares from an arm’s length third party, resulting in Agnico owning 19.9% of the Company’s issued and outstanding common shares.
Fort Capital acted as financial advisor to Maple Gold on the Transaction.