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Stonegate Capital Partners Updates Coverage On Maple Gold Mines Ltd. (TSXV:MGM)

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DALLAS, TX / ACCESSWIRE / June 23, 2022 / Maple Gold Mines Ltd. (TSXV:MGM): The full report can be accessed by clicking on the following link: http://stonegateinc.com/reports/MGM.V Q122.pdf


Maple Gold Mines is a gold exploration company in Canada. The Company, through its JV agreement with Agnico Eagle Mines (NYSE: AEM) holds a 50% interest in the Douay gold project (covering an area of approximately 357 sq kilometers) and the Joutel gold project (covering an area of approximately 39 sq kilometers) located in the prolific Abitibi Greenstone Belt in Québec, Canada. The Company also holds an exclusive option to acquire 100% of the Eagle Mine Property. Maple Gold Mines is headquartered in Vancouver, Canada. The Company trades on the TSX.V under the symbol MGM and on the OTCQB under the symbol MGMLF.


  • Operating in Canadian hub for mining - The Company's Douay and Joutel gold projects are in Quebec's prolific Abitibi Greenstone Gold Belt. The Abitibi belt stretches from Ontario to Quebec, which are two of Canada's top mining jurisdictions and has seen heightened M&A activity. The Abitibi belt continues to be a significant area for mining activity, and it contains some of Canada's largest gold mines. Furthermore, it contains many exploration and development projects.

  • Strong partnership with Agnico Eagle Mines - The Company has a 50/50 joint venture with Agnico Eagle Mines on its Douay/Joutel gold projects. In return for granting Agnico joint ownership, Agnico is providing exploration funding, technical expertise, and supporting Maple Gold on third party project financing. While the projects are still in the advanced exploration stage, Agnico's involvement is a significant de-risking milestone.

  • And Agnico has additional incentives - At the commencement of the 50/50 JV, Agnico acquired 25.8M units of Maple Gold at a price of C$0.24 for total proceeds to Maple Gold of C$6.2M. With Agnico's current ownership at 40.9M shares or ~12% ownership, Agnico has additional incentives to successfully explore and develop its gold projects with Maple Gold.

  • Established gold resources with significant expansion potential - According to the Company, the Douay gold project is one of the largest undeveloped gold deposits in Quebec. In March 2022, Maple Gold reported an updated NI43-101 Mineral Resource Estimate (MRE). The pit-constrained MRE saw a 21% increase in Indicated Resources to 511,000 oz of AU (at an average grade of 1.59 g/t) and an increase of 7% of Inferred Resources to 2.53M oz of AU (at an average grade of 1.02 g/t). Given the 357 km2 land package and favorable geology, resource expansion and new discovery potential is significant, particularly at depth. The Company is expecting potential catalysts in F22 via results from Winter 2022 drilling at Douay, a supplemental C$4.8M deep drilling program, and a regional high-resolution Mag-EM survey to support further drill targeting.

  • High-grade upside potential - The Joutel gold project is contiguous to the Douay gold project, and part of the 50/50 JV with Agnico. The past-producing Joutel mine complex yielded over 1.1M oz of AU at an average grade of 6.5 g/t, dating back to the early 1970s, and is on the historical Eagle-Telbel mine trend. The Company's 2021 exploration program completed a major digitization program to convert over 250,000 meters of historical drill data into an electronic format to support 3D modeling and drill targeting. The project has the potential for high-grade extensions of gold mineralization beyond previously mined areas. Potential catalysts in F22 include Phase I/II drilling results at Eagle (~8,200 m) and initial JV drilling at Telbel as part of a supplemental C$4.8M deep drilling program.

  • Balance sheet supports plans - At Q121, MGM had cash of C$19.9M. Additional liquidity could arise via warrant conversion for ~C$21.2M. Lastly, there is a ~C$14M JV exploration funding commitment remaining from Agnico.

  • Valuation - Comparative companies trade in a wide range on EV/Resources of about US$6.59 to US$134.63 with a median of US$28.35. This compares to Maple Gold trading at an EV/Resources of US$24.13. Given Maple Gold's 50/50 JV with Agnico, potential exploration upside, and a solid liquidity position, we would expect Maple Gold to trade toward the higher end of the range.

About Stonegate Capital Partners

Stonegate Capital Partners is a Dallas-based corporate advisory firm dedicated to serving the specialized needs of small-cap public companies. Since our inception, our mission has been to find innovative, undervalued public companies for our network of leading institutional investors who seek high-quality investment opportunities.

Stonegate Capital Partners
(214) 987-4121

SOURCE: Stonegate Capital Partners

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