Maple Gold Mines (TSXV: MGM) (FSE: M3G) announced Wednesday it has closed the previously announced strategic investment from Agnico Eagle Mines (TSE: AEM), 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. Prior to this investment, Agnico owned 4.4% of Maple Gold’s issued and outstanding common shares.
The 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,” said Matthew Hornor, CEO of Maple Gold Mines in a media statement.
“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.”
At market close Wednesday, Maple Gold Mines’ stock up over 17% on the TSXV. Shares had been traded over 3.3 million times, more than three times the daily average of 770,109. The company has a $C88.1 million market capitalization.