Monarch’s principal asset is the Wasamac gold underground project located 15km west of Rouyn-Noranda in the Abitibi region
Yamana Gold has agreed with Monarch Gold to acquire its Wasamac property and Camflo property with mill in Abitibi region, in a transaction valuing around C$152m ($115.5m).
Under the terms of the agreement, Yamana will acquire all the outstanding shares of Monarch at a price of around C$0.63 ($0.48m) per Monarch share on a fully diluted basis.
Monarch shareholders are expected to receive a total of around C$60.8m ($46.2m) in cash and Yamana shares valuing around C$91.2m ($69.30m).
With the transaction, Yamana will benefit from the high-quality project with a significant mineral reserve and mineral resource base and potential for further expansion.
Also, the acquisition expands the company’s footprint in the Abitibi region, which is experienced in large bulk tonnage underground mines.
Yamana stated: “The acquisition adds to the Company’s footprint in the Abitibi region, which is consistent with Yamana’s strategy to build on its existing presence in established mining jurisdictions where it has deep technical, geological, and operational expertise.”
Wasamac comprises five well developed ore shoots
Monarch’s principal asset Wasamac gold underground project is located 15km west of Rouyn-Noranda in the Abitibi region of Quebec, and 100km from its Malartic mine.
Wasamac comprises five well developed ore shoots within a single, continuous shear zone with a consistent grade distribution and wide mining widths, which facilitates simple, productive, and cost-efficient underground bulk mining.
Camflo property is located 15km northwest of Val-d’Or, which includes the old Camflo mine, closed in 1992, and a permitted mill.
The property has not been explored since the mid-1980s, and Yamana believes that it has good exploration upside, and intends to review Monarch’s digitised historical exploration data.