Monarch Mining Corporation Announces the Closing of the $11.25 Million Transaction with Gold Royalty Corp.
Monarch Mining Corporation (TSX: GBAR, OTCQX: GBARF) has completed a significant transaction with Gold Royalty Corp, acquiring $11.25 million in cash. The deal includes a $2.50 per tonne royalty on materials processed through the Beacon mill from the Beaufor mine and a 2.5% net smelter return royalty on Croinor Gold, McKenzie Break, and Swanson properties, with a buy-back option for Monarch. The first cash payment of $7.5 million has been made, with the remaining $3.75 million due in six months.
- Monarch received $11.25 million in cash proceeds from the transaction.
- The deal includes valuable royalty interests that may enhance future revenue.
- The ability to buy back half of the NSR royalty for $2 million per property offers potential financial flexibility.
- None.
MONTREAL, Aug. 05, 2021 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQX: GBARF) is pleased to announce the closing of the previously announced transaction with Gold Royalty Corp. (“Gold Royalty”) (NYSE: GROY) whereby Gold Royalty has acquired the following royalty interests from Monarch for cash proceeds of
- a
$2.50 per tonne royalty on all material processed through the Beacon mill originating from the Beaufor mine operations; and - a
2.5% net smelter return (“NSR”) royalty on each of the Croinor Gold, McKenzie Break and Swanson properties, of which half (1.25% ) can be bought back by Monarch for$2 million per property in the future, subject to certain conditions being met.
As per the terms of the Transaction, Gold Royalty made a first cash payment of
Laurentian Bank Securities Inc. acted as financial advisor to Monarch in connection with the Transaction.
About Gold Royalty
Gold Royalty Corp. is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to acquire royalties, streams and similar interests at varying stages of the mine life cycle to build a balanced portfolio offering near, medium and longer-term attractive returns for its investors. Gold Royalty’s diversified portfolio currently consists of net smelter return royalties on gold properties located in the Americas.
About Monarch
Monarch Mining Corporation (TSX: GBAR) is a fully integrated mining company that owns four advanced projects, including the fully permitted past-producing Beaufor Mine, which has produced more than 1 million ounces of gold over the last 30 years. Other advanced assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near Monarch’s wholly owned and fully permitted Beacon 750 tpd mill. Monarch owns 28,702 hectares (287 km2) of mining assets in the prolific Abitibi mining camp.
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 Senior Geologist – Communications Specialist | 1-888-994-4465 e.tremblay@monarchmining.com |
FAQ
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What does the 2.5% net smelter return royalty entail for Monarch Mining?
