Yamana Gold Closes Acquisition Of Monarch Gold

Last night, Monarch Gold (TSX: MQR) formally announced the completion of the proposed transaction with that of Yamana Gold (TSX: YRI). The transaction saw a number of assets sold off to Yamana, while the remaining assets owned by the firm were spun off into a new corporation, known as Monarch Mining Corporation.

The complex transaction effectively saw Yamana acquire the Wasamac and Camflo properties, while the Beaufor, Croinor Gold, McKenzie Break and Swanson properties were spun off into a new corporation. Yamana on a technical level acquired all the shares of Monarch, and then spun off the unwanted assets, making the transaction effectively a merger arrangement.

Monarch shareholders under the arrangement effectively received compensation of $0.63 per share for their investment. Shareholders were to receive $0.192 in cash for each share held, as well as 0.0376 of a Yamana share, with a stated valuation at the time of announcement of $0.288. Finally, shareholders were also to receive 0.20 of a spinco share, with each full share having an implied valuation of $0.75.

Shares of Monarch Mining Corporation have been conditionally approved by the Toronto Stock Exchange for listing, with trading expected to commence on January 26, 2021.

Yamana Gold last traded at $6.62 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.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Secures Two Additional Exploration Licenses For Flagship Project

First Majestic Posts Record Quarterly Silver Production In Q3

Related News

Newlox Gold Expands Into Brazil, Two Prospective Facilities Targeted

Newlox Gold Ventures (CSE: LUX) is growing beyond the borders of Costa Rica. The company...

Wednesday, June 16, 2021, 08:02:16 AM

Grande Portage Releases Sample Assay Results At Herbert Gold

Grande Portage Resources (TSXV: GPG) this morning reported early results from its ongoing exploration program...

Thursday, September 9, 2021, 09:44:00 AM

Trillium Gold Granted Drill Permit For Rivard Property, Plans Drilling At Gold Centre, Leo

Trillium Gold Mines (TSXV: TGM) had a brief update for the market this morning, announcing...

Wednesday, December 23, 2020, 08:45:12 AM

Argonaut Gold To Begin Site Preparation Imminently At Magino Gold Property

Argonaut Gold (TSX: AR) had a notable update this morning for its Magino project, with...

Thursday, January 21, 2021, 07:52:18 AM

Gold, Oil Jump Following Uncertainty In Middle East

The price of gold and oil has rallied this morning off the back of continued...

Friday, October 13, 2023, 09:02:13 AM