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Three-year term loan agreement with a maximum annual interest rate of 6% to restart the Beaufor Mine and the Beacon Mill.
Monarch continues to strengthen its financial position, with over $43 million in cash and cash equivalents.
MONTREAL, Aug. 03, 2021 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQX: GBARF) is pleased to announce that it has entered into a $13.5 million senior secured term loan agreement (the “Loan”) with Investissement Québec. The Loan has a three-year term and bears interest at an annual rate of 6% until the restart of the Beaufor Mine and Beacon Mill, 5% during the first year of production and 4% for the subsequent years, subject to certain pre-established terms and conditions.
“We are delighted to have received financial support from Investissement Québec to restart operations at the Beaufor Mine and Beacon Mill,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “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.”
“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. Our government is proud to support Monarch's project, which will contribute to the creation of some 100 quality jobs in the region.”
Eric Girard, Minister of Finance and Minister of Economy and Innovation
“Mining is part of Abitibi-Témiscamingue's DNA, where the mining sector is an important source of wealth and jobs for local communities. The revival of the Beaufor Mine and Beacon Mill will support the post-pandemic economic recovery, in addition to enhancing existing facilities in the region and capitalizing on our abundant natural resources.”
Pierre Dufour, Minister of Forests, Wildlife and Parks and Minister Responsible for the Abitibi-Témiscamingue Region and the Nord-du-Québec Region
“The mining industry has been and continues to be key to Québec’s economic development. With this financing, 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.”
Guy LeBlanc, President and Chief Executive Officer of Investissement Québec
Once the transaction closes, Monarch will have a stronger balance sheet, with over $43 million in cash and cash equivalents.
The transaction is subject to certain conditions, including, but not limited to, the execution of a final agreement, approval of the Toronto Stock Exchange and other closing conditions that are standard for transactions of this nature.
About Investissements Québec
Investissement Québec’s mission is to play an active role in Québec’s economic development by stimulating business innovation, entrepreneurship and recovery, as well as investment and export growth. Active in every administrative region of Québec, the corporation supports the creation and development of businesses of all sizes through investments and adapted financial solutions. Investissement Québec also supports companies through consulting services and other accompanying measures, including technological support offered by Investissement Québec – CRIQ. Also, through Investissement Québec International, the corporation assists companies in exporting and prospecting for foreign talent and investment in Québec.
Monarch Mining Corporation (TSX: GBAR) is a fully integrated mining company that 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 Monarch’s wholly owned and fully permitted Beacon 750 tpd mill. Monarch owns 28,702 hectares (287 km2) of mining assets in the prolific Abitibi mining camp that host 714,982 ounces of combined measured and indicated gold resources and 421,793 ounces of combined inferred resources.
The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarch’s actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.
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