Monarch Gold Sells Fayolle To IAMGOLD For $11.5 Million
Montreal, Quebec, Canada, June 1, 2020 – MONARCH GOLD CORPORATION (“Monarch” or the “Corporation”) (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) is pleased to announce that it has entered into an agreement for the sale of the Fayolle property to IAMGOLD Corporation (“IAMGOLD”) (TSX: IMG) (NYSE: IAG). The Fayolle property consists of 39 mineral claims covering an area of 1,373 hectares in Aiguebelle and Clricy townships, approximately 35 km northeast of Rouyn-Noranda, Quebec.
In order to acquire the Fayolle property, IAMGOLD will pay Monarch a total amount of $11.5 million through:
- the issuance of common shares of IAMGOLD to Monarch for a total value of $9.7 million based on a 10-day volume weighted average price (VWAP) on the TSX preceding today’s announcement;
- a $0.3 million cash payment upon transfer of ownership of a parcel of land to IAMGOLD; and
- a $1.5 million cash payment 90 days after the initial transport of ore from the Fayolle deposit.
“This is a profitable short-term transaction for Monarch, allowing us to significantly strengthen our financial position without dilution and with the potential for appreciation if the share value of IAMGOLD increases, especially in the current gold bull market,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “While Fayolle has potential, the fact remains that Wasamac is our priority project and the recent signing of the MOU with Glencore Canada (see press release dated May 14, 2020) has raised the outlook of our 2.6-million-ounce gold flagship project, which includes 1.8 million ounces of reserves. The funds from this transaction will allow us to advance the Wasamac project at a faster pace, while simultaneously pursuing exploration programs on our Beaufor and McKenzie Break properties.”
The transaction is expected to close in the coming weeks.