Monarch Announces Agreement with Gold Royalty

Rhea-AI Summary

Monarch Mining Corporation has announced a major agreement with Gold Royalty Corp involving a combination of royalty sales and buyback eliminations. The deal includes selling a C$1.25 per tonne royalty on the Beacon Mill and eliminating a 1.25% royalty buyback on the Croinor Gold, McKenzie Break, and Swanson properties. In exchange, Monarch will receive a cash payment of C$4.5 million. The transaction is expected to close by April 15, 2022, strengthening Monarch's financial position and operational flexibility.

Positive

• Monarch receives C$4.5 million in cash, enhancing liquidity.
• Elimination of certain royalties improves long-term profit margins.

Negative

• None.

MONTREAL, March 29, 2022 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQX: GBARF) is pleased to announce that it has entered into an agreement with Gold Royalty Corp. (NYSE: GROY) regarding a combination of royalty sales and buyback eliminations, including the sale of an additional C$1.25 per tonne royalty on the Beacon Mill, the sale of an additional 0.25% net smelter return royalty and the elimination of the 1.25% royalty buybacks on each of the Croinor Gold, McKenzie Break and Swanson properties, in exchange for a cash payment of C$4.5 million to Monarch.

Laurentian Bank Securities Inc. acted as financial advisor to Monarch in connection with the transaction.

The Corporation expects to close the transaction by April 15, 2022.

About Monarch
Monarch Mining Corporation (TSX: GBAR) (OTCQX: GBARF) is a fully integrated mining company that owns four projects, including the Beaufor Mine, which has produced more than 1 million ounces of gold over the last 30 years. Other assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near Monarch’s wholly owned 750 tpd Beacon Mill. Monarch owns 29,504 hectares (295 km²) of mining assets in the prolific Abitibi mining camp that host a combined measured and indicated gold resource of 478,982 ounces and a combined inferred resource of 383,393 ounces.

Forward-Looking Statements
The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarch’s actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.

FOR MORE INFORMATION:

Jean-Marc Lacoste President and Chief Executive Officer	1-888-994-4465                         jm.lacoste@monarchmining.com
Mathieu Séguin Vice President, Corporate Development	1-888-994-4465 m.seguin@monarchmining.com
Elisabeth Tremblay Geologist and Communication Manager	1-888-994-4465 e.tremblay@monarchmining.com

www.monarchmining.com

FAQ

What is the recent agreement between Monarch Mining and Gold Royalty Corp?

Monarch Mining announced an agreement to sell royalties and eliminate buybacks, receiving C$4.5 million.

How much will Monarch Mining receive from the royalty transaction?

Monarch Mining will receive C$4.5 million from the agreement with Gold Royalty Corp.

When is the expected closing date for Monarch Mining's transaction with Gold Royalty Corp?

The transaction is expected to close by April 15, 2022.

What specific royalties are involved in the Monarch Mining and Gold Royalty Corp deal?

The deal includes a C$1.25 per tonne royalty on the Beacon Mill and the elimination of a 1.25% royalty buyback on the Croinor Gold, McKenzie Break, and Swanson properties.

What is the significance of eliminating royalties for Monarch Mining?

Eliminating royalties improves Monarch Mining's long-term profit margins and operational flexibility.