Maple Gold Mines announced a restructuring transaction of its joint venture with Agnico Eagle Mines for the Douay and Joutel gold projects in Québec, Canada.

Agnico Eagle will transfer the legal title to the JV's properties and assets, and Maple Gold will obtain 100% ownership. In return, Maple Gold will grant Agnico a 1% net smelter return royalty.

Agnico will also have the option to acquire a 50% ownership interest in the assets if Maple Gold decides to develop a mine complex with a C$300 million net present value. If Agnico chooses to do so, it will have to make a cash payment equal to 200% of specified project expenditures and an additional C$12 million.

If Agnico doesn't exercise the above option and if construction is suspended at any point, the Canadian gold producer also has the option to acquire 50% interest under similar conditions once the construction is restarted.

"This transformative, value-unlocking transaction resulted from teamwork between Agnico Eagle and Maple Gold, and it represents a win-win for both parties that paves the way for the continued advancement of the Douay and Joutel gold projects," Maple Gold's chief executive Kiran Patankar said. 

"Upon completion, Maple Gold will gain 100% control of an established gold mineral resource at Douay, a past-producing high-grade gold mining complex at Joutel and a fertile and as yet underexplored ~400 km2 land package straddling one of the three major regional deformation zones in the Abitibi, with a clear path to advance the projects," Patankar added. "We look forward to continued collaboration on multiple fronts."

Additionally, Maple Gold announced its intention for a private placement of 33,821,842 flow-through shares at C$0.12/share, for a total of C$4,058,621. It will use the proceeds for exploration expenses for its properties in Québec.

Maple Gold's shares are trading at C$0.055/share, and its market cap is C$18.78 million.