{"id":1187506,"date":"2020-06-01T06:33:00","date_gmt":"2020-06-01T11:33:00","guid":{"rendered":"https:\/\/www.mining.com\/?p=1025683"},"modified":"2020-06-01T06:33:00","modified_gmt":"2020-06-01T11:33:00","slug":"iamgold-buys-monarch-golds-fayolle-for-11-5m","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1187506","title":{"rendered":"IAMGOLD buys Monarch Gold\u2019s Fayolle for $11.5m"},"content":{"rendered":"

Canada\u2019s Monarch Gold (TSX: MQR) is selling its Fayolle property in western Quebec<\/a> to fellow miner IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) in a cash and share deal valued at $11.5 million.<\/p>\n

The Montreal-based company said the transaction will see IAMGOLD issuing $9.7 million in common shares to Monarch and a $0.3 million cash payment once ownership of the asset has been transferred.<\/p>\n

IAMGOLD will also give Monarch $1.5 million in cash 90 days after the initial transport of ore from the Fayolle deposit.<\/p>\n

Monarch president and chief executive, Jean-Marc Lacoste, said the move was a \u201cprofitable short-term transaction\u201d that would allow the company to strengthen its financial position without dilution. He also highlighted the potential for appreciation of IAMGOLD shares.<\/p>\n

Funds from the transaction will allow the mine developer to advance its flagship Wasamac gold project, also in western Quebec, at a faster pace, Lacoste said.<\/p>\n

Monarch signed last month a memorandum of understanding (MOU) with Glencore Canada, that could see the mine developer using the major\u2019s plant near Timmins to process ore from its Wasamac property, also in western Quebec.<\/p>\n

\u201c[That agreement] has raised the outlook of our 2.6-million-ounce gold flagship project, which includes 1.8 million ounces of reserves,\u201d  Lacoste said.<\/p>\n

Monarch is evaluating an upgrade on part of Glencore\u2019s concentrator as part of a plan that involves shipping ore by rail from the Wasamac property for processing into dor\u00e9 bars. The company is expected to finish the upgrading study by Dec. 31.<\/p>\n

If both parties agree the results of the study is in each other’s interests, Monarch and Glencore will then negotiate a toll milling agreement by March 30, 2021.<\/p>\n

Monarch would also agree to fund upgrades to the concentrator and any related infrastructure by July 2023.<\/p>\n

Potentially, the first carloads of ore from Wasamac could arrive by December 2023.<\/p>\n

Glencore’s Metallurgical Site (Met Site), near Timmins, Ontario, was built in 1966 with numerous upgrades performed over the years. With a capacity to process 12,500 tonnes daily, the concentrator currently handles metal ore to produce copper and zinc concentrates.<\/p>\n

More to come\u2026<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Monarch will use the funds to advance its flagship Wasamac gold project, also in western Quebec.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[949,369,4],"tags":[43],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1187506"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1187506"}],"version-history":[{"count":7,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1187506\/revisions"}],"predecessor-version":[{"id":1187619,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1187506\/revisions\/1187619"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1187506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1187506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1187506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}