Monarch Gold - Wasamac sale and spin out
Monarch Gold has entered a definitive agreement with Yamana Gold to sell its flagship Wasamac property and its Camflo mill and tailings facilities to Yamana for C$152m, or C$0.48 per share on a fully diluted basis. Monarch’s remaining assets Croinor, McKenzie Break, Swanson and Beaufor (plus its Beacon Mill, related liabilities and C$14m in cash) will be spun out as a separate company (SpinCo). Management estimates of the SpinCo valuation of C$47.5m, of C$0.15 per share, would imply an overall deal valuation of C$200m. This would represent a 43% premium to the 20-day VWAP of Monarch, although ultimately the deal premium will be determined by the SpinCo valuation once it starts trading.Monarques Gold is engaged in the acquisition and exploration of mining properties in the Province of Quebec, mainly in the James Bay region in the sector of Nemaska, along the Lac des Montagnes green belt polymetallic formation.
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