Gold Royalty Corp. has entered into a definitive agreementwith Monarch Mining Corp. to acquire five gold royalty interests for a total consideration of CAN$15 million (approximately US$12 million), of which CAN$11.25 million is payable on closing and CAN$3.75 million will be paid upon the 6-month anniversary of closing.
The royalty interests include:
- A CAN$2.50/t royalty on material processed through Monarch's Beacon mill originating from the Beaufor mine operations.
- A 2.5% net smelter return (NSR) royalty on each of Monarch's Croinor Gold, McKenzie Break, and Swanson properties – each located in Quebec, Canada.
- A 1% NSR on Monarch's Beaufor property, located in Quebec Canada held by Caisse de dépôt et placement du Québec.
The transaction is subject to customary conditions and is expected to close in August 2021.
David Garofalo, CEO, President, and Chairman of Gold Royalty, comments:
“We are excited to be partnering with Jean-Marc Lacoste and the strong technical team at Monarch to assist in the reopening of the Beaufor mine and to add additional high quality royalties to our portfolio. These assets will not only add potential near term cash flow to our company, but also a strong pipeline of development and exploration projects located in Quebec, a very favourable mining jurisdiction. The Monarch royalties nicely complement the pro-forma portfolio of over 100 royalties in the Americas resulting from our previously announced acquisition of Ely Gold Royalties Inc.”
Read the article online at: https://www.globalminingreview.com/mining/27072021/gold-royalty-to-acquire-monarch-mining-gold-royalties/
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