Monarch Gold Shareholders Approve Transaction With Yamana Gold

Monarch Gold (TSX: MQR) has seen its shareholders approve of the previously announced acquisition with Yamana Gold (TSX: YRI), whereby Yamana will acquire what amounts to the major assets of Monarch. The transaction, which is complex in nature, will see shareholders effectively receive $0.63 per share in total consideration, which includes 0.20 shares of a newly formed spinout, Monarch Mining Corporation, for each share held.

The transaction will effectively see Yamana acquire the Wasamac property and the Camflo property and mill from that of Monarch in an overly complicated transaction for total consideration of $200 million. The properties that Yamana is not interested in, which include the Beaufor mine, the McKenzie Breaka property, the Croinor Gold property, the Swanson property and the Beacon Gold mill and property, will be placed into a spinout along with $14 million in cash.

The spinout, to be known as Monarch Mining Corporation, is expected to be publicly traded on the Toronto Stock Exchange, under the symbol “GBAR”. The transaction as a whole has been granted shareholder approval, with the arrangement remaining subject to approval from the Superior Court of Quebec. The hearing for sought after approval is to take place January 20, 2021. Monarch shares will continue to trade on the TSX until such approval is granted.

Monarch Gold last traded at $0.55 on the TSX.

Information for this briefing was found via Sedar and Monarch Gold Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Jay Lutz

As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.