Monarch Will Reopen Beaufor Mine
This follows the announcement that Investissement Québec provided Monarch with a $13.5 million senior secured term loan agreement. The loan has a threeyear term and bears interest at an annual rate of 6% until the restart of the company’s Beaufor mine and Beacon mill, 5% during the first year of production, and 4% for the subsequent years. Once the transactions close, Monarch said it will have a stronger balance sheet with more than $43 million.
“We are delighted to have received fi- nancial support from Investissement Québec to restart operations at the Beaufor mine and Beacon mill,” President and CEO Jean-Marc Lacoste said. “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. We estimate that we will be able to create over 100 new high-quality jobs when our facilities become fully operational in 2022.”
Monarch Mining was created following a $200 million transaction between Yamana Gold and Monarch Gold announced on November 2, 2020. Monarch owns four advanced projects, including the fully permitted, past-producing Beaufor mine, which has produced more than 1 million ounces of gold over the last 30 years. Other advanced assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near the 750- mt/d Beacon mill. Monarch also owns 28,702 hectares (287 km2) of mining assets in the prolific Abitibi mining camp.
The mining industry has been and continues to be key to Québec’s economic development, explained Guy LeBlanc, president and CEO of Investissement Québec. “We are pleased to be working with an experienced team to resume long-term operations of a gold mine and mill in Abitibi- Témiscamingue, thereby contributing to developing our natural resources and building our expertise while generating significant benefits for the region,” he added.