Bullboard - Stock Discussion Forum Monarch Gold Corporation T.MQR

Metals & Mining Industrial Metals & Minerals

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.

Add To Watchlist

TSX:MQR - Post Discussion

Monarch Gold Corporation > Monarch Sale

View:

Post by PaulOntario on Nov 14, 2020 10:35pm

Monarch Sale

Sale is contingent upon no better offer, unlikely given low price offer. Croinor mine is also up for sale/partnership as focus is on Beaufor mine to "fund" McKenzie which is their focus on exploration. Results on drilling will be released prior to cut off date for sale to be voted on and finalized before end of December. The results are being timed to add valuation at the same time gold price will raise due to inflationary pressure from COVID-19 stimulus worldwide. No downside as "downside" a markup in valuation to 63 cents per share. Upside significant in short term. Best to hold and be patient. Adding extra cash is best as better than leaving in cash for nothing in interest. Even downside is free money as Yamana stock will also raise as strong cash flow results released from past quarter will drive prices higher.

My feeling is 90 cents minimum value on deal when finished to whoever seals the deal with Monarch(which is the shareholders like us)

Paul

860

Comment

Comment by Wantonfuey on Nov 15, 2020 11:10am

agree except that Yamana's share price is a bigger risk than you propose--questionable jurisdictions that I avoid is potential downside. That said, the risk/reward on this heavily favors the reward side. Yamana pps could drop $1 (20%) and the deal would still be aroudnd where it trades-- ~.42 USD all else equal.

181

Comment

Comment by rats99 on Nov 16, 2020 11:29am

This post has been removed in accordance with Community Policy

Comment by Wantonfuey on Nov 16, 2020 2:14pm

LOL...correct about jurisdictional risk but 'run'?! Quite pile of money you suggest fleeing from. The smarter play is to wait until the transaction and then sell AUY. Not really a very complicated equation to solve...spin co shares might not be as cheap in the open market.

236

Comment

Comment by Timster61 on Nov 16, 2020 3:50pm

Agreed! The FX risk of YRI is minimal compared to the upside of Spinco! But to each their own. I will sit and wait and then decide whether to take the cash and sell YRI shares or sell and invest in Spinco. We still haven't been updated on drill results for Beaufor, etc.. I assume they want to release these closer to the closing date

256

Comment

Monarch Gold Corporation