Maple Gold Mines Ltd. [MGM-TSXV, MGMLF-OTCQB, M3G-FSE] said Monday it has entered into an option agreement with Globex Mining Enterprises Inc. [GMX-TSX, G1MN-Frankfurt] to acquire a 100% interest in the Eagle mine property in the Abitibi region of Quebec.
Maple said the deal provides a clear path to consolidate the past-producing, high-grade Eagle-Telbel underground mine at the Joutel gold project in Quebec, Canada. The Joutel Gold project is held in a 50/50 joint venture between Maple Gold and with Agnico Eagle Mines Ltd. (AEM-TSX, AEM-NYSE).
Globex Mining shares were almost unchanged on the news, easing 0.90% or $0.01 to $1.10. The shares traded in a 52-week range of $1.49 and 45 cents. Maple Gold was unchanged a 35 cents and trades in a 52-week range of 56 cents and 13 cents.
The Eagle property hosts the historical underground Eagle Mine, which formed part of a Agnico’s past producing Eagle-Telbel mining complex that produced 1.1 million ounces of gold between 1974 and 1993. The transaction consolidates a strategic land position along the dominant northwest-southwest gold trend (Harricana Deformation Zone) that hosted the entire Eagle-Telbel mining complex.
The announcement comes after Maple Gold recently signed a binding term sheet with Agnico Eagle Mines, which contemplated a 50-50 joint venture that combines Maple Gold’s Douay Project and Agnico’s Joutel Project in a consolidated joint property package.
The Douay and Joutel projects are contiguous properties located in the Abitibi region of Quebec. The Joutel project hosts Agnico’s past-producing Telbel mine.
Agnico also agreed to complete a $6.2 million strategic investment in Maple Gold by subscribing for 25.8 million units in a non-brokered private placement at 23.9 cents per share, bringing Agnico’s basic share ownership in Maple Leaf to 12.8%.
The Douay Gold Project covers an area of more than 390 square kilometres along the Casa Berardi Deformation Zone within the prolific Abitibi Greenstone Belt.
The Douay deposit is estimated to contain indicated mineral resources of 422,000 ounces or 8.6 million tonnes at an average grade of 1.52 g/t gold. On top of that is an inferred resource of 2.35 million ounces or 71.2 million tonnes at an average grade of 1.03 g/t gold.
On Monday, Maple said limited exploration activity has been conducted at Eagle since mine closure in 1993. Maple Gold will acquire a 1005 interest in Eagle by paying Globex $1.2 million in cash and shares over five years and spending the same amount on exploration over four years. This amount can be accelerated at the company’s discretion.
Maple Gold will immediately begin developing a new 3D geological and structural model that builds upon the work currently underway at the Telbel underground mine area and will apply additional exploration approaches to target new gold zones in the Eagle Mine area that may have been overlooked in the past 28 years.
“Securing an option to acquire Eagle is highly strategic as we have strong reason to believe that high-grade gold mineralization remains at the entire past-producing Eagle-Telbel mine area,’’ said Maple Gold President and CEO Matthew Hornor.