2020-10-08

Maple Sugar

Agnico Eagle Announces Investment in Maple Gold Mines Ltd.
Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle") announced today that it has agreed to subscribe for 25,838,821 units ("Units") of Maple Gold Mines Ltd. (TSX-V: MGM) ("Maple") in a non-brokered private placement at a price of $0.239 per Unit for total consideration of approximately $6,175,478 (the "Private Placement"). Each Unit is comprised of one common share of Maple (a "Common Share") and one common share purchase warrant of Maple (a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at a price of $0.34 for a period of three years following the closing date of the Private Placement, subject to acceleration of the expiry date, at the option of Maple, in the event the Common Shares trade on the TSX-V above $0.60 for a period of twenty consecutive trading days at any time following two years from the closing date of the Private Placement. Closing is expected to occur on or about October 9, 2020 and is subject to certain conditions.

In addition to the Private Placement, Agnico Eagle and Maple have entered into a binding term sheet (the "Binding Term Sheet") that contemplates the formation of a 50-50 joint-venture, which will combine Maple's Douay Project and Agnico Eagle's Joutel Project into a consolidated joint property package (the "Joint Venture"). The Douay Project and Joutel Project are adjacent properties located in the Abitibi region of Quebec, and the Joutel Project hosted Agnico's past-producing Telbel mine. Subject to the terms and conditions of the Binding Term Sheet, Agnico Eagle and Maple Gold have agreed to negotiate in good faith and use commercially reasonable efforts to enter into a definitive joint venture agreement within three months of signing the Binding Term Sheet. The Binding Term Sheet provides, among other things, that (i) Agnico Eagle will fund $18 million in exploration expenses over a four-year period; (ii) Agnico Eagle and Maple will jointly fund an additional $500,000 in exploration of VMS targets on the western portion of the Douay Project; and (iii) Agnico Eagle and Maple will each be granted a 2% NSR on the property that they contribute to the Joint Venture, each with aggregate buyback provisions of US$40 million.

I have resistance near 23.5 cents, there's a gap from today's move at 19 cents. The high as of this posting is 22 cents. Beyond 24 cents, what AEM is paying for shares, I expect a run. If you love risk, there are warrants selling for 8 cents. They expire in June 2022. Warrants traded at 10 cents back in July when MGM was also at 22 cents.

MGM was on my watch list, one of many nice chart setups. I bought today on the news, but it still has not completed its pattern.

Discussion of the AEM MGM deal with CEO of Maple Gold

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