$13.5 Million Financing With Investissement Québec - Three-year term loan agreement with a maximum annual interest rate of 6% to restart the Beaufor Mine and the Beacon Mill.
- Monarch continues to strengthen its financial position, with over $43 million in cash and cash equivalents.
MONTREAL, Aug. 03, 2021 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQX: GBARF) is pleased to announce that it has entered into a $13.5 million senior secured term loan agreement (the “Loan”) with Investissement Qubec. The Loan has a three-year term and bears interest at an annual rate of 6% until the restart of the Beaufor Mine and Beacon Mill, 5% during the first year of production and 4% for the subsequent years, subject to certain pre-established terms and conditions.
“We are delighted to have received financial support from Investissement Qubec to restart operations at the Beaufor Mine and Beacon Mill,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “This latest non-dilutive financing agreement, combined with other recently announced financings, will enable us to easily recommission our two main mining assets while maintaining an excellent financial position. We estimate that we will be able to create over 100 new high-quality jobs when our facilities become fully operational in 2022.”
“The mining industry plays a key role in our economy and generates wealth in many of our regions. The revival of the Beaufor Mine and Beacon Mill is an initiative that will support the economic recovery in Abitibi-Tmiscamingue while continuing to develop our expertise in the gold sector. Our government is proud to support Monarch's project, which will contribute to the creation of some 100 quality jobs in the region.”
Eric Girard, Minister of Finance and Minister of Economy and Innovation
“Mining is part of Abitibi-Tmiscamingue's DNA, where the mining sector is an important source of wealth and jobs for local communities. The revival of the Beaufor Mine and Beacon Mill will support the post-pandemic economic recovery, in addition to enhancing existing facilities in the region and capitalizing on our abundant natural resources.”
Pierre Dufour, Minister of Forests, Wildlife and Parks and Minister Responsible for the Abitibi-Tmiscamingue Region and the Nord-du-Qubec Region
“The mining industry has been and continues to be key to Qubec’s economic development. With this financing, we are pleased to be working with an experienced team to resume long-term operations of a gold mine and mill in Abitibi-Tmiscamingue, thereby contributing to developing our natural resources and building our expertise while generating significant benefits for the region.”
Guy LeBlanc, President and Chief Executive Officer of Investissement Qubec
Once the transaction closes, Monarch will have a stronger balance sheet, with over $43 million in cash and cash equivalents.
The transaction is subject to certain conditions, including, but not limited to, the execution of a final agreement, approval of the Toronto Stock Exchange and other closing conditions that are standard for transactions of this nature.