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.
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.