Yamana Gold to Acquire Monarch’s Assets in Abitibi Region, Canada
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Yamana Gold has entered into a definitive agreement with Monarch Gold Corporation to acquire the Wasamac property and Camflo property and mill through the acquisition of all of the outstanding shares of Monarch not owned by Yamana under a plan of arrangement for consideration, including cash and shares, of approximately C$152 million. In connection with the plan of arrangement, Monarch will complete a spin-out to its shareholders, through a newly-formed company SpinCo of its other mineral properties and certain other assets and liabilities of Monarch.
The acquisition provides Yamana with a high-quality project with a significant mineral reserve and mineral resource base and excellent potential for further expansion. The acquisition adds to the company’s footprint in the Abitibi region, which is consistent with Yamana’s strategy to build on its existing presence in established mining jurisdictions where it has deep technical, geological, and operational expertise.
The acquisition of the Wasamac and Camflo properties adds to Yamana’s pipeline of organic opportunities, significantly enhancing the company’s future growth prospects. The company has considerable experience in large bulk tonnage underground mines, experience which will support the development of Wasamac. The acquisition aligns with the company’s strategy for a balanced approach to capital allocation.
Anticipated Benefits to Monarch Shareholders
• Realize immediate value through the total consideration premium to Monarch’s current share price.
• Continue to participate in the value created from advancing the exploration and development of the acquisition properties supported by Yamana’s financial capability, operational, and technical experience as well as its familiarity with the advancement of the Wasamac project.
• Benefit from exposure to Yamana’s diversified portfolio of producing mines with more than one million ounces of gold equivalent production per year, a strong balance sheet, strong and increasing free cash flow generation and dividends, and an enhanced market profile and liquidity.
• Ownership in SpinCo, a newly-created exploration company holding Monarch’s remaining pipeline of development and exploration projects, including the Beaufor mine, the Croinor property, the McKenzie Break property, the Swanson property, and the Beacon mill.
• It is expected that Monarch’s senior executive team will continue in the same roles at SpinCo, and that SpinCo will have C$14 million in cash to support its work programs and for general corporate purposes. SpinCo represents an excellent opportunity for investors to participate in a well-capitalized company with earlier stage exploration assets managed by an experienced team of executives and board of directors.
To read more details in the company’s press release, CLICK HERE
About Yamana Gold
Yamana Gold Inc. is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile, and Argentina. Yamana plans to continue to build on this base through expansion and optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in the Americas.
To stop by Yamana’s website, CLICK HERE
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