Monarch reaches debt settlement agreements
Struggling miner Monarch Gold on Wednesday announced that it had reached agreements with certain of its creditors for more than C$9.3-million, as president and CEO Jean-Marc Lacoste said that the company was going through “a difficult period”.
Monarch, which in September placed its Beaufor mine on care and maintenance, will issue 36 383 805 shares at C$0.0075 each and defer the payment of certain amounts to 2023, 2024 and 2025. This will allow the company to reduce its accounts payable and allow time for a strategic review of its business.
In addition, Monarch said it had returned the C$6-million that it held in trust to Investissement Quebec, reducing the amount owing to C$12.4-million.
The company also reduced certain accounts payable by returning merchandise that it had in inventory to their suppliers.
Monarch said last week that it would need additional financing before the end of the year to improve working capital, meet debt repayment obligations and reach payment agreements with suppliers.
The firm reported a net loss of C$22.3-million in the September quarter.
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