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Monarch Announces Debt Settlement

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Monarch Mining Corporation (TSX: GBAR, OTCQX: GBARF) announced a debt settlement agreement exceeding $9.3 million. The corporation will issue 36,383,805 common shares at $0.075 each, deferring other debts to 2023-2025. Monarch also returned $6 million held in trust to Investissement Québec, reducing its liabilities to $12.5 million. Additionally, accounts payable were lowered by returning excess inventory. Monarch's CEO, Jean-Marc Lacoste, acknowledged the company's current challenges and expressed gratitude to creditors. Approval from regulators is needed for share issuance.

Positive
  • Debt settlement agreement of over $9.3 million to improve liquidity.
  • Issuance of 36,383,805 common shares at $0.075 each to reduce obligations.
  • Reduction of total liabilities to $12.5 million.
  • Return of merchandise to suppliers, lowering accounts payable.
Negative
  • Ongoing financial difficulties highlighted by the need for debt restructuring.
  • Dependence on creditor patience may indicate potential solvency issues.

MONTRÉAL, Nov. 15, 2022 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQX: GBARF) announced today that it has reached agreements with certain of its creditors for more than $9.3 million (the “Debt Settlement”). The Corporation will issue 36,383,805 common shares at a price of $0.075 per share and defer the payment of certain amounts to 2023, 2024 and 2025. This will allow Monarch to reduce its accounts payable and allow time for the strategic review of its business.

In addition, Monarch returned the $6 million that it held in trust to Investissement Québec, reducing the amount owing to $12.5 million.

Finally, the Corporation also reduced certain accounts payable by returning merchandise that it had in inventory to their suppliers.

“We are currently going through a difficult period at Monarch, and we would like to sincerely thank our creditors for their patience and flexibility,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch.

The share-based debt settlements are subject to regulatory approval. All common shares issued pursuant to the Debt Settlement are subject to a hold period of four months plus a day from the date of issuance of the common shares in accordance with applicable securities legislation.

About Monarch
Monarch Mining Corporation (TSX: GBAR) (OTCQX: GBARF) is a gold mining company that owns four projects, including the Beaufor Mine, which is currently on care and maintenance and 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 Beacon Mill with a design capacity of 750 tpd. 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 666,882 ounces and a combined inferred resource of 423,193 ounces.

Forward-looking statements
All statements, other than statements of historical fact, contained in this press release including, but not limited to those describing the timeline of the initiatives described in this press release, the entering into or more sale agreements, debt settlement agreements, merger or other combination business agreements, the Corporation’s commitments and initiatives outlined in the press release, the intended results of the initiatives described in this press release, the positive impact of the foregoing on project economics, and those statements which are discussed under the “About Monarch” paragraph and elsewhere in the press release which essentially describe the Corporation’s outlook and objectives, constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of Canadian, and are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect.

Forward-looking statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, the Corporation's ability to continue as a going concern, the Corporation being a going concern able to realize its assets and discharge its liabilities in the normal course of business as they come due into the foreseeable future, the generation of interest for its review of a range of alternatives, in either the sale of part or all of the Company or its assets, a merger or other business combination with another party, a potential investment in Monarch, a debt restructuring, or other strategic initiatives with the goal of maximizing return in respect of the Company’s assets, the ability of the Corporation to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability of financing or financing on favorable terms for the Corporation, the business conditions of the Corporation will not change In a materially adverse manner, expectations that the business of the Corporation will continue in the ordinary course, litigation as well as cash flow and capital structure risks and general business risks. A further description of risks and uncertainties can be found in Monarch's Annual Information Form dated September 28, 2022, including in the section thereof captioned “Risk Factors”, which is available on SEDAR at www.sedar.com. Unpredictable or unknown factors not discussed in this Cautionary Note could also have material adverse effects on forward-looking statements.

Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the manuals of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

Further information regarding the Corporation is available in the SEDAR database (www.sedar.com) and on the Corporation’s website at: www.monarchmining.com.

FOR MORE INFORMATION:

Jean-Marc Lacoste1-888-994-4465
President and Chief Executive Officerjm.lacoste@monarchmining.com
  
Mathieu Séguin1-888-994-4465
Vice President, Corporate Developmentm.seguin@monarchmining.com


www.monarchmining.com

 


 

Table 1: Monarch combined gold resources

Mineral resource estimatesTonnes
(metric)
Grade
(g/t Au)
Ounces 
Beaufor Mine1    
Measured Resources328,5005.759,900 
Indicated Resources956,4005.2159,300 
Total Measured and Indicated1,284,9005.3219,200 
Total Inferred818,9004.7122,500 
Croinor Gold2    
Measured Resources97,7006.2419,600 
Indicated Resources805,9006.50168,300 
Total Measured and Indicated903,6006.47187,900 
Total Inferred200,1006.1939,800 
McKenzie Break3    
In-pit    
Total Indicated1,441,3771.8083,305 
Total Inferred2,243,5621.44104,038 
Underground    
Total Indicated387,7205.0362,677 
Total Inferred1,083,5034.21146,555 
Swanson4    
In-pit    
Total Indicated1,864,0001.76105,400 
Total Inferred29,0002.462,300 
Underground    
Total Indicated91,0002.868,400 
Total Inferred87,0002.878,000 
TOTAL COMBINED5
Measured and Indicated Resources
Inferred Resources
  666,882
423,193
 
 
1 Source: NI 43-101 Technical Report and Mineral Resource Estimate for the Beaufor Mine Project, October 13, 2021, Val-d’Or, Québec, Canada, Charlotte Athurion, P. Geo., Pierre-Luc Richard, P. Geo., and Dario Evangelista, P. Eng., BBA Inc.
2 Source: NI 43-101 Technical Report and Mineral Resource Estimate for the Croinor Gold Project, June 17, 2022, Val-d’Or, Québec, Canada, Olivier Vadnais-Leblanc, P.Geo., Carl Pelletier, P.Geo. and Eric Lecomte, P.Eng., InnovExplo Inc.
3 Source: NI 43-101 Technical Evaluation Report on the McKenzie Break Property, October 14, 2021, Val-d’Or, Québec, Canada, Alain-Jean Beauregard, P.Geo., Daniel Gaudreault, P.Eng., of Geologica Groupe-Conseil Inc., and Merouane Rachidi, P.Geo., Claude Duplessis, P.Eng., of GoldMinds GeoServices Inc.
4 Source: NI 43-101 Technical Report and Mineral Resource Estimate for the Swanson Project, January 22, 2021, Val-d’Or, Québec, Canada, Christine Beausoleil, P. Geo. and Alain Carrier, P. Geo., InnovExplo Inc.
5 Numbers may not add due to rounding.

 


FAQ

What is Monarch Mining Corporation's debt settlement amount?

Monarch Mining Corporation has reached a debt settlement of over $9.3 million.

How many shares will Monarch Mining issue in its debt settlement?

Monarch Mining will issue 36,383,805 common shares at a price of $0.075 each.

What will happen to Monarch Mining's liabilities after the debt settlement?

Monarch Mining's liabilities will be reduced to $12.5 million after returning $6 million held in trust.

Are the debt settlement share issuances subject to approval?

Yes, the share issuances related to the debt settlement are subject to regulatory approval.

What is the stock symbol for Monarch Mining Corporation?

The stock symbol for Monarch Mining Corporation is GBARF on OTCQX.

MONARCH MINING CORP

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