Monarch Mining - President and CEO, Jean Marc Lacoste.
President and CEO, Jean Marc Lacoste.
Source: The Northern Miner.
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Monarch Gold (TSX:MQR) has secured a C$5 million investment to re-open the Beaufor mine in Quebec
  • The investment has come from the investment firm Caisse de depot et placement du Quebec (CDPQ)
  • Monarch will use the funds to commence a 42,500-metre drilling program at Beaufor 
  • The investment comes with a 3 per cent net smelter royalty back for CDPQ
  • Monarch Gold (MQR) is in the grey and trading at $0.245 per share, with a market cap of $66 million

Monarch Gold (TSX:MQR) has secured a C$5 million investment to re-open the Beaufor mine in Quebec.

Monarch sold a three per cent net smelter royalty to the investment firm Caisse de depot et placement du Quebec (CDPQ) in exchange for the investment.

Monarch has agreed to undertake a 42,500-metre drill program at Beaufor on the back of the investment and have taken Goldspot Discoveries on board to build a more detailed mineralogical map of the site.

Goldspot are an exploration technology firm that use geoscience and artificial intelligence to build more efficient exploration maps.

Caisse de depot et placement du Quebec is an investment firm that have committed to a $4 billion investment envelope to help stimulate the Quebec economy during the Coronavirus outbreak.

Jean-Marc Lacoste, President and CEO of Monarch said the company was thankful for the CDPQ partnership, which had a good chance at giving the Beaufor mine a second life.

“This investment is a turning point for the Beaufor mine, which still has considerable high-grade gold potential, as we demonstrated during our last drilling campaign in 2018.

“Our ultimate goal is to bring Beaufor into production within 12 to 18 months, which will allow us to take advantage of the bull market for gold and to once again create high quality jobs for the local communities,” he said. 

For their part, the investors CDPQ’s Vice President and Head of Quebec Investments and Stewardship Investing Kim Thomassin said their investment would allow Monarch to pursue its exploration plan, which they hoped could lead to the re-opening of the mine.

“This transaction will pave the way for the company to integrate new artificial intelligence technology, which is in line with our desire to encourage more companies from so-called traditional sectors to take the digital turn to improve their performance,” she said.

Monarch Gold has committed to restarting the Beaufor mine within the next 12 to 18 months.

Monarch Gold (MQR) is in the grey and trading for $0.245 per share at 10:08 am EDT. 

More From The Market Herald

" Prime Meridian (TSXV:PMR) announces $1M financing

Prime Meridian Resources Corp. (PMR) has signed a non-brokered private placement financing agreement for proceeds of up to $1 million.

" Fortune Bay (TSXV:FOR) files Goldfields PEA

Fortune Bay (FOR) has filed an independent preliminary economic assessment (PEA) for its Goldfields Project in Saskatchewan.

" Emperor Metals (CSE:AUOZ) announces $5M private placement

Emperor Metals (AUOZ) has announced a non-brokered private placement for gross proceeds of up to $5,001,550.
Emerita Resources Corp. - CEO, David Gower

" Emerita (TSXV:EMO) announces Aznalcóllar trial date

Emerita Resources (EMO) announced the Third Section of the Provincial Court of Seville has set the date court date regarding the Aznalcóllar package.