Gold miner Monarch Mining has entered into a $13.5-million senior secured term loan agreement with Investissement Québec to aid the restart of the Beaufor mine and Beacon mill.
The loan has a three-year term and bears interest at a rate of 6% a year until the restart of the mine and mill, 5% during the first year of production and 4% for the subsequent years.
“This latest non-dilutive financing agreement, combined with other recently announced financings, will enable us to easily recommission our two main mining assets while maintaining an excellent financial position,” said Monarch president and CEO Jean-Marc Lacoste.
Monarch estimates that it will be creating more than 100 new jobs when its facilities become fully operational next year.
“The mining industry plays a key role in our economy and generates wealth in many of our regions. The revival of the Beaufor mine and Beacon mill is an initiative that will support the economic recovery in Abitibi-Témiscamingue while continuing to develop our expertise in the gold sector,” commented Quebec Finance, Economy and Innovation Minister Eric Girard.
Monarch said recently that the past-producing Beaufor mine and Beacon mill, in Vald’Or, would reopen by June next year.
The Beaufor mine was closed in 2019 and the nearby 750 t/d Beacon mill has been on care and maintenance since 2016. The mill is fully permitted to process up to 1.8-million tonnes of tailings, representing some nine years of ore processing at full capacity.