Monarch Gold Corporation T.MQR

Takeover

[kukaman]

Monarch Gold Announces Friendly Acquisition Agreement With Yamana Gold
Mon, November 2, 2020, 8:09

https://finance.yahoo.com/news/leons-announces-opening-two-stores-140000312.html

Transaction Terms

Upon implementation of the plan of arrangement, the following assets and liabilities will be transferred by Monarch to SpinCo in consideration for the issuance of the SpinCo Shares to Monarch Shareholders:

1. The Beaufor mine, the McKenzie Break property, the Croinor Gold property, the Swanson property and the Beacon Gold mill and property (the "SpinCo Properties'');

2. C$14 million cash;

3. All assets and liabilities related to the SpinCo Properties.

Following the Spin-Out, each outstanding common share of Monarch will be exchanged for:

1. C$0.192 in cash from Yamana;

2. 0.0376 of a Yamana share (a value of C$0.288 based on the volume weighted average price of the Yamana shares on the TSX for the 20 trading days ending on October 30, 2020);

3. 0.20 of a SpinCo Share (with each full share having a value of C$0.75 per share).

Following the completion of the transaction, Monarch Shareholders will own approximately 1.3% of Yamana and 100% of SpinCo, and Yamana will own 100% of Monarch.

[linvest]

Hum the deal seems very low for Monarch Shareholders. 71$ per reserve or 44$ per resource... Also they evaluate the spinco at 48MC$, does it worth that when you remove Wasamac and Camflo... Not sure at all... Nice for Yamana shareholders for sure they get a strong asset for cheap... "The total Yamana consideration (the “Yamana Consideration”) is valued at approximately C$152 million and

[Timster61]

Hopefully Alamos or Iamgold etc.. bid it up - agree it seems low unless there are some drill results at Beaufor or Mackenzie Break we don't know about

[nozzpack]

I think that the very high capex ( over $500 m ) to develop Wasa must be included in that calculation as the actual purchase price is just a fraction of the total cost. Had Wasa been producing, those reserves would be valued above $300 US per ounce.