Yamana Gold Invests In Monarch Gold
- Closing of a $5,419,800 private placement with Yamana Gold ($4.2 million), Alamos Gold ($720,000) and other investors ($499,800).
- Yamana Gold will be entitled to participate in future financings to maintain its interest in the Corporation and will be represented on the Board of Directors of Monarch.
Montreal, Quebec, Canada, June 11, 2020 – MONARCH GOLD CORPORATION (“Monarch” or the “Corporation”) (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) is pleased to announce the closing of a $5,419,800 private placement with Yamana Gold Inc. (“Yamana”) (TSX: YRI; NYSE: AUY), Alamos Gold Inc.(“Alamos”) (TSX: AGI) (NYSE: AGI) and other investors, pursuant to which it has issued a total of 22,582,500 common shares at $0.24 per share and 11,291,250 warrants, each warrant entitling the holder to purchase one common share of Monarch at a price of $0.29 until June 10, 2023.
Yamana has subscribed for $4.2 million in Monarch shares and will be entitled to participate in future Monarch financings to maintain its interest in the Corporation, subject to Yamana maintaining a minimum 5% interest. Yamana will also be entitled to name a representative to the Board of Directors of Monarch.
“This strategic investment by a mining company of Yamana's calibre is tangible proof that we are on the right track. I would like to thank them for their confidence and their future contribution to our Board of Directors,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “The steps we have taken to advance our flagship Wasamac project continue to attract a great deal of interest from the mining and financial community and it is only a matter of time before we are fully appreciated. With this financing, our overall financial position now stands at more than $25 million, which will allow us to move more quickly to develop Wasamac, Beaufor and McKenzie Break, gold projects at various stages of development that each have excellent upside potential.”
Alamos has exercised its right to participate in this private placement in order to maintain its interest in Monarch by subscribing for an amount of $720,000.
The securities to be issued pursuant to the private placement will be subject to a four month and one day hold period ending October 11, 2020, under applicable Canadian securities legislation.