On May 7, 2020, Monarch Gold Corporation announced that it has signed an agreement with the Caisse de dépôt et placement du Québec (CDPQ) to sell a 3% net smelter return royalty on gold production at the Beaufor mine for $5 million. The $5 million will be payable to Monarch in two installments: $3 million upon closing of the transaction and an additional $2 million once the Corporation has completed a total of 15,000 metres of drilling on the Beaufor property or within 60 days of the Beaufor mine going into production.
This investment will support the potential re-opening of the Beaufor Mine with the goal to restart gold production within 12 to 18 months to take advantage of the bullish gold market. Monarch Gold and CDPQ also retained the services of a company using artificial intelligence algorithms to increase the efficiency and success rate of mineral exploration at the re-opening. CDPQ’s strategic investment has the ability to give a second life to the Beaufor mine, which still has considerable high-grade gold potential.
A Fasken team composed of Frank Mariage, Jean-Philippe Côté, Carole Gélinas, Nicolas Leblanc, Paul Cabana, Nathalie Lauzier and Gina Batrouni advised the Caisse de dépôt et placement in connection with this investment.Jurisdiction
- Québec
