Gold Royalty Acquires Royalty Rights From Monarch Mining For $ 11.25 Million
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(Kitco News) – Monarch Mining (TSX: GBAR) announced today that it has entered into a definitive agreement with Gold Royalty (NYSE: GROY) under which Gold Royalty will acquire royalty rights from Monarch for a cash product of $ 11.25 million.
The company said the deal includes a royalty of $ 2.50 per tonne on all material processed by the Beacon mill from operations at the Beaufor mine; and a 2.5% net smelter return royalty on each of the Croinor Gold, McKenzie Break and Swanson properties, half of which (1.25%) may be repurchased by Monarch for $ 2 million per property at the future, subject to certain conditions.
After the transaction closes, Monarch said it will have a strengthened balance sheet with around $ 30 million in cash and cash equivalents.
“We are very pleased to have signed this non-dilutive financing agreement with Gold Royalty, which will apply mainly to capital expenditures and equipment purchases for the reopening of the Beaufor mine and the Beacon plant and to the reinforcement of our balance sheet, ”said Jean-Marc Lacoste, President and CEO of Monarch.
Gold Royalty is a gold-focused royalty company providing creative financing solutions to the metals and mining industry. Gold Royalty’s diversified portfolio currently consists of net smelter return royalties ranging from 0.5% to 2.0% on 18 gold properties spanning 12 projects located in the Americas.
Monarch Mining is a fully integrated mining company with four advanced projects, including the former fully licensed Beaufor mine which has produced over one million ounces of gold over the past 30 years. Other advanced assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near the 750 tpd Beacon mill wholly owned and fully licensed by Monarch.
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