The Canadian gold producer will also have the option to buy a 50% interest in the properties if Maple decides to develop a mine complex that is supported by a pre-feasibility or feasibility study demonstrating a C$300 million net present value of the projects.
Should Agnico exercise that option, it will be required to make a cash payment equal to the sum of 200% of the amount of specified expenditures incurred by Maple in respect of the projects, plus an additional C$12 million.
In the event that construction of the project is suspended, Agnico also has the option to buy 50% of the assets upon its restart for a similar payment structure amount plus half of the project expenditures incurred following the date of the construction decision until the date of option exercise.
Maple Gold’s CEO Kiran Patankar called the JV restructuring a “transformative, value-unlocking transaction” that resulted from teamwork between the…
