Monarch Obtains US$1 Million from Metalla Royalty & Streaming Following Amendment of Beaufor Royalty Agreement

Rhea-AI Summary

MONARCH MINING CORPORATION (TSX: GBAR) (OTCQX: GBARF) has amended its agreement with Metalla Royalty & Streaming Ltd., removing a clause that exempted a 1% net smelter return royalty on gold production from the Beaufor Mine until 100,000 ounces of gold were produced. This amendment, effective immediately, follows a US$1 million cash payment to Monarch. CEO Jean-Marc Lacoste emphasized the importance of this non-dilutive move for enhancing financial stability ahead of the Beaufor Mine and Beacon Mill restart.

Positive

• Amendment to the royalty agreement enhances Monarch's financial position.
• US$1 million cash payment received, supporting operational readiness for the Beaufor Mine and Beacon Mill.
• Removal of the royalty exemption facilitates immediate gold production benefits.

Negative

• None.

MONTREAL, Feb. 16, 2022 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQX: GBARF) is pleased to announce the signing of an amendment to the agreement regarding the 1% net smelter return royalty on gold production from the Beaufor Mine (the “Royalty”) owned by Metalla Royalty & Streaming Ltd. (“Metalla”) (TSXV: MTA) (NYSE: MTA). In consideration for a US$1 million cash payment to Monarch, the clause stipulating that the Royalty will be exempt until 100,000 ounces of gold have been produced following Monarch’s acquisition of Beaufor will be removed, making the agreement effective immediately for both parties.

“We are pleased to have Metalla’s support as we continue to strengthen our financial position in a non-dilutive manner in preparation for the restart of the Beaufor Mine and the Beacon Mill,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch.

Concurrently, the Corporation also closed its transaction announced on February 7, 2022 with Triple Flag Precious Metals Corp.

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 29,000 hectares (290 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	1-888-994-4465
President and Chief Executive Officer	jm.lacoste@monarchmining.com
Mathieu Séguin	1-888-994-4465
Vice President, Corporate Development	m.seguin@monarchmining.com
Elisabeth Tremblay	1-888-994-4465
Geologist and Communication Manager	e.tremblay@monarchmining.com

www.monarchmining.com

FAQ

What is the recent announcement by Monarch Mining Corporation on February 16, 2022?

Monarch Mining Corporation announced an amendment to its royalty agreement with Metalla Royalty & Streaming Ltd., effective immediately after a US$1 million cash payment.

How does the royalty agreement amendment affect Monarch Mining's operations?

It removes the royalty exemption clause, enabling Monarch to benefit from gold production from the Beaufor Mine sooner.

What is the stock symbol for Monarch Mining Corporation?

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

What are the plans for the Beaufor Mine after the recent agreement amendment?

The amendment supports Monarch's preparation for the restart of the Beaufor Mine and the Beacon Mill.