Less than two weeks after Investissement Quebec called in a loan on Monarch Mining (TSX: GBAR), the firm has forced the miner into creditor protection.
Monarch revealed late tonight that Investissement Quebec filed an application with the Superior Court of Quebec under the Companies Creditors Arrangement Act to push the company into creditor protection. An initial order was granted, with PricewaterhouseCoopers Inc appointed as the monitor.
Monarch as a result expects the TSX to delist the company from the exchange. Laurie Gaborit, Guylaine Daigle, Michel Bouchard and Benoit Desormeaux meanwhile have resigned from the board of directors due to the filing, with Jean-Marc Lacoste to remain in an effort to implement the court approved process to solicit investment and sale proposals for the assets of Monarch.
The filing follows Investissement Quebec issuing a prior notice of exercise of a hyporthecary right in early November related to an outstanding $13.5 million loan that was issued in 2021. At the time, the loan was to enable the restart of the Beaufor Mine and Beacon Mill, which was expected to generate 100 jobs in the Abitibi-Temiscamingue region.
Mechanical and procurement issues, along with grade discrepancies, however lead to the mine being put into care and maintenance in 2022.
As of June 30, total assets of Monarch sat at $45.7 million, versus liabilities of $36.2 million, with the firms cash position sitting at jsut $231,000.
Monarch Mining last traded at $0.01 on the TSX.
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