Agnico Eagle shifts focus on Quebec gold project
The mining giant is undermining its move by investing 6.2m CAD into Maple Gold Mines.
Agnico Eagle Mines Ltd. sees continued potential in Quebec's prolific northern mining belt as the company invests C $ 6.2 million in a junior mining company. On Thursday, the world's seventh largest gold producer by market capitalization announced a non-brokered private placement agreement with Maple Gold Mines Ltd. on. The deal is a mix of junior explorer stocks and warrants. Agnico currently owns 4.4% of Maple Gold and upon completion of the private placement with an increase in shares and warrants, the company will own 12.84%, the company said. In addition, the two companies are seeking a 50-50 joint venture agreement to combine Maple Gold's Douay Project and Agnico's Joutel Project. "The Douay Project and the Joutel Project are adjacent properties in the Abitibi area of Quebec, and the Joutel Project hosted Agnico's formerly producing Telbel Mine," Agnico said in its press release. Under the joint venture agreement, Agnico will finance $ 18 million in exploration work over a period of four years. The two companies will also have a 2% royalty agreement. "The strategic partnership with Agnico represents a milestone for Maple Gold and supports the opportunity ahead. Agnico is one of the world's leading gold mining companies. Your involvement, along with Joutel's contribution, will create an extremely promising land package that has the potential to be exciting new gold field in Quebec's Abitibi gold belt, "said Matthew Hornor, President and CEO of Maple Gold.