FAYOLLE PROPERTY
Monarch Gold sells Fayolle property to Iamgold for $11.5 million
Allen Sykora Monday June 01, 2020 08:42
Kitco News
(Kitco News) - Monarch Gold Corp. (TSX: MQR) has agreed to sell the Fayolle property to Iamgold Corp. (TSX: IMG; NYSE: IAG) for $11.5 million, Monarch said Monday.
The Fayolle property consists of 39 mineral claims in an area of 1,373 hectares in Aiguebelle and Cléricy townships in Quebec.
Monarch said consideration will include shares of Iamgold totaling $9.7 million based on a 10-day volume weighted average price, 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 [memorandum of understanding] with Glencore Canada 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, Monarch said.
For Kitco News