Monarch Gold sells Fayolle to Iamgold
Canadian gold miner Iamgold will purchase the Fayolle property, in Quebec, from junior miner Monarch Gold for $11.50-million in a share and cash transaction.
The Fayolle property consists of 39 mineral claims covering 1 373 ha in the Aiguebelle and Cléricy townships, north-east of Rouyn-Noranda.
Announcing the transaction on Monday, Monarch said Iamgold would issue shares to the value of $9.70-million for the property, as well as a $300 000 cash payment upon transfer of ownership of a parcel of land and a $1.5-million cash payment 90 days after the initial transport of ore from the Fayolle deposit.
CEO Jean-Marc Lacoste said that the transaction was a profitable short-term option for Monarch, allowing it to strengthen its financial position without dilution and with the potential for appreciation if the share value of Iamgold increased.
“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 programmes on our Beaufor and McKenzie Break properties,” Lacoste said.
The transaction is expected to close in the coming weeks.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation