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Bullboard - Stock Discussion Forum Monarch Gold Corporation T.MQR

Monarch Gold Corp is a Canada-based exploration-stage company. It is engaged in the acquisition and exploration of gold mining properties. Its main activities are located in the province of Quebec, Canada. The corporation holds an interest in gold properties including the Beaufor Mine, Camflo Mill, Croinor Property, Beacon Mill, Wasamac, and McKenzie Break among others.

TSX:MQR - Post Discussion

Monarch Gold Corporation > Monarch Gold Sells Fayolle To IAMGOLD For $11.5 Million
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Post by locomoco on Jun 01, 2020 7:56am

Monarch Gold Sells Fayolle To IAMGOLD For $11.5 Million

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.

Comment by greendayyyy on Jun 01, 2020 8:18am
Very good transaction for MQR. The share price of IMG could easily appreciate by 25 to 30% fairly quickly with the rise in gold. Increase in cash without dilution. Good news.
Comment by locomoco on Jun 01, 2020 9:09am
Good for Monarch to increase cash without dilution. Looking forward to news regarding drill results on Beaufor using AI and progress on McKenzie. 
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