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Agnico Eagle Mines Boosts Stake in Maple Gold Mines with Significant Share Acquisition
Agnico Eagle Mines Limited announced the acquisition of 33,821,842 common shares (“Common Shares”) of Maple Gold Mines Ltd. (TSXV: MGM) (“Maple”) on June 21, 2024, at a price of $0.085 per Common Share, amounting to a total consideration of approximately $2,874,856.57. The shares were purchased from several sellers who had acquired them through a flow-through Common Shares offering by Maple (the “Share Purchase”).
Prior to the Share Purchase, Agnico Eagle held 40,852,415 Common Shares, representing about 11.97% of the issued and outstanding Common Shares on a non-diluted basis. After the Share Purchase, Agnico Eagle’s holdings increased to 74,674,257 Common Shares, which is approximately 19.9% of the issued and outstanding Common Shares on a non-diluted basis.
Agnico Eagle and Maple have an investor rights agreement dated October 13, 2020. Under this agreement, Agnico Eagle has specific rights, provided it maintains certain ownership thresholds in Maple, including: (a) the right to participate in equity financings to maintain its pro rata ownership in Maple or to acquire up to a 19.90% ownership interest; and (b) the right to nominate one person (and, if the board of directors of Maple expands to eight or more directors, two persons) to the board of directors of Maple, although Agnico Eagle has no current intention of exercising this right.
Agnico Eagle acquired the Common Shares for investment purposes. Depending on market conditions and other factors, Agnico Eagle may acquire additional Common Shares or other securities of Maple, or it may sell some or all of its Common Shares or other securities of Maple.
Additionally, Agnico Eagle and Maple entered into a conveyance and option agreement dated June 20, 2024 (the “Conveyance and Option Agreement”). Subject to the satisfaction of certain closing conditions, this agreement entails: (a) the termination of the existing joint venture agreement dated February 2, 2021, between Agnico Eagle and Maple; (b) Maple obtaining a 100% ownership interest in the Douay Gold Project and Joutel Gold Project (the “Projects”); (c) Maple granting Agnico Eagle a 1.0% net smelter return royalty on the Projects; and (d) Agnico Eagle retaining certain options to acquire a 50% ownership interest in the Projects.
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