Consolidation in Gold sector has just begun! MONTREAL , Nov. 2, 2020 /CNW/ - MONARCH GOLD CORPORATION (" Monarch " or the " Corporation ") (TSX: MQR) (OTCQX: MRQRF) (FRANKFURT: MR7) is pleased to announce that it has entered into a definitive agreement (the " Agreement ") with Yamana Gold Inc. (" Yamana " or the " Company ") pursuant to which Yamana will acquire the Wasamac property and the Camflo property and mill through the acquisition of all of the outstanding shares of Monarch (not already owned by Yamana) for total consideration of approximately C$200 million or C$0.63 per Monarch share on a fully diluted basis, under a plan of arrangement. The total consideration to be paid by Yamana to the shareholders of Monarch (" Monarch Shareholders ") is approximately C$60.8 million in cash and C$91.2 million in Yamana shares. Under the plan of arrangement, Monarch will first complete a spin-out to its shareholders, through a newly-formed company (" SpinCo ") that will hold its other mineral properties and certain other assets and liabilities of Monarch, by issuing as consideration common shares of SpinCo (the " SpinCo Shares ") having an implied value of approximately C$47.5 million (the " Spin-Out ").
