MGM~HEALTHY TREASURY $8M FULLY FUNDED~AGNICO EAGLE PARTNER "We are thrilled to have completed this transformative and value-unlocking transaction, which consolidates 100% ownership of Douay/Joutel into Maple Gold and paves the way for the continued advancement of the Projects," stated Kiran Patankar, President and CEO of Maple Gold. "With a healthy treasury of over $8 million and a clear, fully funded organic growth strategy focused on aggressive resource expansion, project de-risking, and potential to make new discoveries across our Qubec project portfolio, the Company is well-positioned to drive shareholder value in the coming year."
Key Terms of Restructuring Transaction
The Restructuring Transaction was implemented in accordance with the terms of the definitive conveyance and option agreement dated June 20, 2024 (the "Agreement") among the Company, its wholly owned subsidiary, MGM Douay Gold Project Ltd., and with Agnico Eagle Mines Limited ("Agnico Eagle"). On closing of the Restructuring Transaction, among other things:
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The joint venture agreement dated February 2, 2021 between the Company and Agnico Eagle, which previously governed the joint venture (the "JV") among the parties with respect to the Projects, was terminated.
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Agnico Eagle transferred to Maple Gold legal title to the properties and assets of the JV (the "JV Assets"). Following such transfer, Maple Gold holds 100% legal title to the Projects and associated assets.
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Maple Gold granted a 1.0% net smelter return royalty in respect of the JV Assets to Agnico Eagle.
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Maple Gold granted to Agnico Eagle (i) an option (the "Construction Option") to acquire a 50% ownership interest in all of Maple Gold's right, title and interest in the JV Assets until the date that is 90 days following receipt by Agnico Eagle of a "Construction Decision Notice" (as defined in the Agreement), and (ii) an option (the "Restart Option") to acquire a 50% ownership interest in all of Maple Gold's right, title and interest in the JV Assets at any time following the occurrence of a "Construction Suspension Event" (as defined in the Agreement), if the Construction Option has not been exercised, until the date that is 90 days following receipt by Agnico Eagle of "Restart Notice" (as defined in the Agreement). The terms of the Construction Option and the Restart Option are described in greater detail in the Company's news release of June 20, 2024.