News. Wasamac. Monarch Gold Signs MOU With Glencore Canada Regarding The Potential Use Of The Kidd Concentrator For Its Wasamac Gold Project
Montreal, Quebec, Canada, May 14, 2020 – MONARCH GOLD CORPORATION (“Monarch” or the “Corporation”) (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) is pleased to announce that it has entered into a memorandum of understanding (“MOU”) with Glencore Canada Corporation (“Glencore”) in connection with the potential use of Glencore’s Kidd concentrator (the “Concentrator”) in Timmins, Ontario for the treatment of ore to be mined from Monarch’s Wasamac gold property located in the Province of Qubec.
Here’s a summary of the MOU, which includes a four-phase work plan to be executed by Monarch:
Phase 1 – Upgrading Study: Monarch will launch a study on upgrading the Concentrator, or part thereof, and related infrastructure to ship the ore from the Wasamac property by railway to have it processed and transformed into dore bars at the Concentrator (the “Upgrading Study”). The Upgrading Study will be funded by Monarch and shall be completed by December 31, 2020 at the latest.
Phase 2 – Negotiation and Signing of a Toll Milling Agreement: If the parties agree that the results of the Upgrading Study are positive for each of their interests, Monarch and Glencore will negotiate in good faith to enter into a toll milling agreement (the “Toll Milling Agreement”). The Toll Milling Agreement shall be executed by March 30, 2021 at the latest, failing which Glencore shall have no further obligations hereunder.
Phase 3 – Concentrator Upgrading Work: Further to the execution of the Toll Milling Agreement, Monarch will fund the work to upgrade the Concentrator and related infrastructure. Phase 3 shall be completed by the end of July 2023 at the latest.
Phase 4 – Performance of the Toll Milling Services: Once Phase 3 is completed, Monarch will ship the ore from its Wasamac property to the Concentrator and Glencore will process it in compliance with the Toll Milling Agreement between the parties. The first delivery of ore from the Wasamac property to the Concentrator shall take place by or prior to December 31, 2023.
In the coming weeks, Monarch will retain the services of one or more consultants to perform the Upgrading Study.
ABOUT KIDD OPERATIONS
Located in Timmins, Ontario, Glencore Canada Corporation operates the Kidd Operations consisting of the Kidd Metallurgical Site and the Kidd Mine.
The Concentrator is located on the property of the Kidd Metallurgical Site (Kidd Met Site). The Kidd Met Site is located 27 km east of Timmins, Ontario in the Townships of Hoyle and Matheson, within the Timmins City Limits. Built in 1966 with numerous upgrades over the years, the Concentrator currently processes metal ore to produce copper and zinc concentrates. The facility has a design rated capacity of 12,500 tonne-per-day and is fully permitted with water taking and discharge permits and thickened tailings storage. The site has incoming and outgoing rail service via Ontario Northland Railway.