Monarch Mining Inks $13.5 Million Financing With Investissement Québec
Monarch Mining Corporation (TSX: GBAR) announced this morning it has recently entered into a senior secured term loan agreement with Investissement Québec. The $13.5-million financing is earmarked to finance the reopening of Beaufor Mine and Beacon Mill.
‘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,” said Monarch Mining President and CEO Jean-Marc Lacoste.
The three-year term loan agreement bears an annual interest of 6% until the restart of the two mining assets, 5% during the first year of the operation, and 4% until the loan matures. Should the transaction close, the company also expects to have over $43 million in cash and cash equivalents.
Both the mining properties are currently on care and maintenance. Since the 1930s, the Beaufor mine has produced over 1.1 million ounces of gold at an average grade of 7.50 g/t gold. The Beacon mill, 7 kilometres from the mine, is estimated to process 750 tonnes per day.
The mining firm expects it will be able to create over 100 new jobs when its facilities become fully operational in 2022.
Monarch Mining Corporation last traded at $0.89 on the TSX.
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