- Monarch Mining (GBAR) has sold a pair of royalty interests to Gold Royalty Corp for C$11.25 million
- Gold Royalty will receive $2.50 per tonne on all material processed through the Beacon mill originating from the Beaufor mine operations
- It will also receive a 2.5 per cent net smelter return royalty on the Croinor Gold, McKenzie Break and Swanson properties
- Monarch Mining is a fully integrated mining company focused on four advanced projects
- Monarch Mining (GBAR) is up by 4.55 per cent and is currently trading at $0.92 per share
Monarch Mining (GBAR) has sold a pair of royalty interests to Gold Royalty Corp for C$11.25 million.
As per the definitive agreement, Gold Royalty will receive:
- A $2.50 per tonne royalty on all material processed through the Beacon mill originating from the Beaufor mine operations
- A 2.5 per cent net smelter return (NSR) royalty on the Croinor Gold, McKenzie Break and Swanson properties, half of which Monarch may buy back for $2 million per property
As a condition of the transaction, Gold Royalty will acquire a 1 per cent NSR on the Beaufor property from Caisse de dépôt et placement du Québec and Monarch’s existing buyback rights on a 1 per cent NSR will be cancelled.
The transaction is expected to close in August 2021.
Following the closing, Monarch’s balance sheet will hold $30 million in cash and cash equivalents.
Jean-Marc Lacoste, Monarch’s President and CEO commented on the transaction.
“We are very pleased to have signed this non-dilutive financing agreement with Gold Royalty, which will be applied mainly to capital expenditures and equipment purchases for the Beaufor mine and Beacon mill reopening and to strengthening our balance sheet.
With the current volatility in the gold market, it was important for us to find another way to secure the additional funds we needed to restart our operations, and we were satisfied with the valuation of our mining projects. It was also important for us to negotiate a partial buyback option for our longer-term properties for future plans that may result in those projects being put into production.”
Gold Royalty is a gold-focused royalty company offering creative financing solutions to the metals and mining industry.
Monarch Mining is a fully integrated mining company focused on four advanced projects.
Monarch Mining (GBAR) is up by 4.55 per cent and is currently trading at $0.92 per share as of 9:32 am ET.