Triple Flag acquires NSR royalty on Beaufor mine
Gold-focused streaming and royalty company Triple Flag Precious Metals is partnering with Monarch Mining to restart production at the past-producing Beaufor mine, in Abitibi, Quebec, later this year.
Triple Flag has entered into agreements to acquire a 2.75% net smelter return (NSR) royalty on the gold project for C$11.25-million.
Triple Flag would acquire the royalty through two transactions, the first of which is with a third party to acquire the existing 2% NSR royalty for C$6.75-million. The second transaction is an agreement with Monarch to provide the developer with additional funding of C$4.5-million for an additional 0.75% royalty.
Monarch CEO Jean-Marc Lacoste commented that the non-dilutive investment would allow the company to strengthen its financial position as it continued to prepare the Beaufor mine and Beacon mill for a restart by June this year.
Monarch has already started shipping ore to the mill and has about 15 000 t ready for processing at the 750 t/d Beacon mill, located about 10 km from Beaufor.
The mine began producing in the early 1930s and has yielded more than 1.2-million ounces of gold at an average grade of 7.34 g/t.
Monarch recently completed a 42 500-m diamond drilling programme to test the areas around historical high-grade intersections.
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