Home > News > Monarch Gold Closes Sale of...

Monarch Gold Closes Sale of Fayolle Property to IAMGOLD

Jun 8, 2020

MONARCH GOLD CORPORATION is pleased to announce the closing of the sale of the Fayolle property to IAMGOLD Corporation for a total consideration of $11.5 million.

"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."

IAMGOLD issued 1,851,145 common shares to Monarch at a price of $5.24 per share for a total value of $9.7 million and will pay an additional $0.3 million in cash upon transfer of ownership of a parcel of land to IAMGOLD and an additional $1.5 million in cash 90 days after the initial transport of ore from the Fayolle deposit.

Tags: Quebec / Deals & Financial / Gold / All Articles