Monarch Gold Corp. has recently announced that is has entered into an agreement for the sale of the Fayolle property to IAMGOLD Corp. The Fayolle property consists of 39 mineral claims covering an area of 1373 hectares in Aiguebelle and Cléricy townships, approximately 35 km northeast of Rouyn-Noranda, Quebec, Canada.
In order to acquire the Fayolle property, IAMGOLD will pay Monarch a total amount of US$11.5 million through:
- The issuance of common shares of IAMGOLD to Monarch for a total value of US$9.7 million based on a 10-day volume weighted average price (VWAP) on the TSX preceding the recent announcement.
- A US$0.3 million cash payment upon transfer of ownership of a parcel of land to IAMGOLD.
- A US$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 CEO 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 has raised the outlook of our 2.6-million-oz gold flagship project, which includes 1.8 million oz of reserves. The funds from this transaction will allow us to advance the Wasamac project at a faster pace, while simultaneously pursuing exploration programmes on our Beaufor and McKenzie Break properties.”
The transaction is expected to close in the coming weeks.
Read the article online at: https://www.globalminingreview.com/finance-business/02062020/monarch-gold-sells-fayolle-to-iamgold/