MONTREAL, June 1, 2020 /PRNewswire/ - MONARCH GOLD
CORPORATION ("Monarch" or the "Corporation")
(TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) is
pleased to announce that it has entered into an agreement for the
sale of the Fayolle property to IAMGOLD Corporation
("IAMGOLD") (TSX: IMG) (NYSE: IAG). The Fayolle property
consists of 39 mineral claims covering an area of 1,373
hectares in Aiguebelle and Cléricy townships, approximately 35 km
northeast of Rouyn-Noranda,
Quebec.
In order to acquire the Fayolle property, IAMGOLD will pay
Monarch a total amount of $11.5
million through:
- the issuance of common shares of IAMGOLD to Monarch for a total
value of $9.7 million based on a
10-day volume weighted average price (VWAP) on the TSX preceding
today's announcement;
- a $0.3 million cash payment upon
transfer of ownership of a parcel of land to IAMGOLD; and
- a $1.5 million cash payment 90
days after the initial transport of ore from the Fayolle
deposit.
"This is a profitable short-term transaction for Monarch,
allowing us to significantly strengthen our financial position
without dilution and with the potential for appreciation if the
share value of IAMGOLD increases, especially in the current gold
bull market," said Jean-Marc
Lacoste, President and Chief Executive Officer of Monarch.
"While Fayolle has potential, the fact remains that Wasamac is our
priority project and the recent signing of the MOU with Glencore
Canada (see press release dated May 14,
2020) has raised the outlook of our 2.6-million-ounce gold
flagship project, which includes 1.8 million ounces of reserves.
The funds from this transaction will allow us to advance the
Wasamac project at a faster pace, while simultaneously pursuing
exploration programs on our Beaufor and McKenzie Break
properties."
The transaction is expected to close in the coming weeks.
ABOUT MONARCH GOLD CORPORATION
Monarch Gold Corporation (TSX: MQR) is an emerging gold mining
company focused on becoming a 100,000 to 200,000 ounce per year
gold producer through its large portfolio of high-quality projects
in the Abitibi mining camp in Quebec,
Canada. The Corporation currently owns over 315 km² of gold
properties (see map), including the Wasamac deposit (measured and
indicated resource of 2.6 million ounces of gold, which includes
proven and probable reserves of 1.8 million ounces of gold), the
Beaufor, Croinor Gold (see video), McKenzie Break and Swanson advanced projects, and the Camflo and
Beacon mills. It also offers custom milling services out of its
1,600 tonne-per-day Camflo mill.
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.
www.monarquesgold.com
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SOURCE Monarch Gold Corporation
