- Agnico Eagle Mines (TSX:AEM) picked up C$2,874,856.57 worth of Maple Gold Mines stock (TSXV:MGM) from investors in a recent flow-through financing
- The transaction was composed of 33,821,842 common shares priced at C$0.085 and increases the senior gold miner’s stake from 11.97 to 19.9 per cent
- Maple Gold is a Canadian exploration company focused on advancing multiple projects in Quebec’s prolific Abitibi Greenstone gold belt
- Maple Gold stock has given back 53 per cent year-over-year and 25 per cent since 2019
Agnico Eagle Mines (TSX:AEM) picked up C$2,874,856.57 worth of Maple Gold Mines stock (TSXV:MGM) from investors in a recent flow-through financing.
The transaction was composed of 33,821,842 common shares priced at C$0.085 and increases the senior gold miner’s stake from 11.97 to 19.9 per cent, begging the questions of what it finds so attractive about Maple Gold’s Quebec-based operations, and whether your portfolio would benefit from exposure to them.
5 reasons to buy Maple Gold Mines stock
- Agnico, which ranks as the third-largest gold producer in the world, and operates producing facilities in Canada, Australia, Finland and Mexico, initially invested in Maple Gold in 2020 (agreement amended in June) to develop the Douay and Joutel projects, which remain 50-50 joint ventures and highly prospective:
- The Douay project, which has been developed for more than a decade, features a 2022 mineral resource estimate of 511,000 ounces of gold indicated and 2,525,000 ounces inferred with robust expansion potential across a district-scale land package.
- The Joutel project houses Agnico’s more than 1.1-million-ounce past-producing Eagle-Telbel mine and benefits from a 3D model that indicates numerous targets worth exploring to expand the mine’s Telbel deposit.
- In terms of fully owned assets, Maple Gold’s Eagle Mine project, the Eagle half of Agnico’s past-producing mine, boasts 2022 drilling results (4 grams per tonne of gold over 7.5 m) that support multiple sub-parallel gold horizons beyond those Agnico mined over a stratigraphic thickness over 100 metres in width.
- Rounding off Maple Gold’s fully owned assets is its Morris project, where data compilation, prospecting, sampling and geophysical survey results show evidence of strong hydrothermal alteration and associated conductors typically encountered around high-grade zinc-copper volcanogenic massive sulphide deposits in the region.
- The company’s high exploration upside is backed by a management team with extensive gold exploration experience, including president and chief executive officer Kiran Patankar’s previously successful stints as CEO at two gold explorers and chief geologist Jocelyn Pelletier’s more than two decades of adding ore resources and longevity to mine projects around the world.
- Finally, MGM shares have given back 25 per cent since 2019, despite gold making new all-time-highs over the past few years, and Maple Gold building a portfolio with blue-sky potential on top of more than 3 million ounces of gold in resources and past production, granting you a discounted look at what Agnico and Maple Gold’s combined expertise can delineate across a wealth of exploration targets.
While the broader marker seems to be misinterpreting Maple Gold Mines as an overly risky play best worth avoiding – likely because of its pre-revenue operations, lingering inflation fears, and a preference for the safety of high cash and bond yields while they’re available – investors should take the reasoning above as a jumping-off point for due diligence, as opposed to a green light to open a position, especially given how only fewer than 1 in 10,000 mineral exploration projects go on to become mines, according to the Ontario Mining Association.
About Maple Gold Mines
Maple Gold is a Canadian exploration company focused on advancing multiple projects in Quebec’s prolific Abitibi Greenstone gold belt.
Maple Gold stock (TSXV:MGM) is up by 25 per cent, trading at C$0.075 per share as of 9:31 am ET. The stock has given back 53 per cent year-over-year and 25 per cent since 2019.
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(Top photo of Maple Gold’s president and chief executive officer Kiran Patankar at 2024’s The Mining Investment Event of the North in Quebec City: Maple Gold Mines)