VANCOUVER, BC, March 29,
2022 /PRNewswire/ - Gold Royalty Corp.
("Gold Royalty" or the "Company") (NYSE: GROY) is
pleased to announce that it has entered into a definitive
agreement (the "Agreement") with Monarch Mining Corporation
("Monarch") (TSX: GBAR)
(OTCQX: GBARF) to provide C$4.5
million in additional royalty financing by increasing the
size of the Company's existing gold royalty interests. Gold Royalty
will provide a further C$1.0 million
in financing by participating in Monarch's C$12.0
million marketed private placement offering. The
expanded royalties include:
- Increased Per Tonne Royalty
("PTR"): The existing C$2.50 PTR
on material from the Beaufor Mine through the Beacon Mill will be
increased to C$3.75/t on material
from the Beaufor Mine and C$1.25/t on
material from the McKenzie Break, Croinor Gold, and Swanson properties.
- Increased Net Smelter Return ("NSR") Royalties: The
existing 2.50% NSR royalties on Monarch's McKenzie Break, Croinor Gold, and
Swanson properties will be
increased to a 2.75% NSR over the properties.
- Buyback Elimination: Monarch's existing 1.25% NSR royalty buyback
rights on the McKenzie Break, Croinor Gold, and Swanson properties will be extinguished.
- Pre-emptive Rights: Gold Royalty will retain pre-emptive
rights on any future PTR's on the Beacon Mill and will retain a
right of first refusal ("ROFR") on the creation of any
additional NSR properties over the McKenzie Break, Croinor Gold,
and Swanson properties.
David Garofalo, Chairman and CEO
of Gold Royalty stated: "We are excited to continue to support the
team at Monarch as they work
towards restarting production at Beaufor and the Beacon Mill. This
acquisition further bolsters Gold Royalty's potential near-term
cashflow with Monarch announcing
that it expects to recommence production in June 2022. The buyback elimination and expanded
NSR royalties to 2.75% over McKenzie Break, Croinor, and
Swanson respectively,
increase our exposure to high-potential exploration assets in
tier-one jurisdictions, strengthening our already impressive
long-term growth portfolio."
The royalty properties are located near strategic infrastructure
in the Abitibi region of Quebec,
Canada and include:
- Beaufor Property / Beacon Mill – The Beaufor mine and
Beacon mill are located approximately 20 kilometers east of
Val-d'Or, Quebec and have
historically produced 1.1 million ounces of gold at an average
grade of 7.50 g/t gold. In June 2021,
Monarch announced that it plans to
restart the Beaufor Mine and the Beacon Mill by June 2022. The Beacon mill is a 750 tonne per day
facility that is fully permitted to process up to 1.8 million
tonnes of tailings. Monarch
announced exploration plans of an expected 25,000m drilling in 2022.
- McKenzie Break – The McKenzie Break property is an
advanced exploration property located approximately 35 kilometers
northeast of Val-d'Or, Quebec. The
property consists of a 70 km2 land package. Monarch announced exploration plans of an
expected 20,000m drilling in
2022.
- Croinor Property – The Croinor Property is a fully
permitted past producing property located 55 kilometers east of
Val-d'Or, Quebec. The project
consists of a district-size land package of over 150
km2. The property is the subject of a January 2018 prefeasibility study. Monarch announced exploration plans of an
expected 3,000m drilling in 2022.
- Swanson Property – The Swanson Property is an earlier
stage exploration property located approximately 12 kilometers
northeast of Barraute, Quebec,
covering 52.26 km2. Monarch announced exploration plans of an
expected 10,000m drilling in
2022.
To learn more about the royalty properties please visit:
https://www.monarchmining.com.
The transaction is subject to customary conditions and is
expected to be completed in the first half of April 2022.
Qualified Person
Alastair Still, P.Geo., Director
of Technical Services of the Company, is a "qualified person" as
such term is defined under National Instrument 43-101, and has
reviewed and approved the technical information disclosed in this
news release. Glenn Mullan, a
director of the Company, is a "qualified person" as such term is
defined under National Instrument 43-101 and has reviewed and
approved the technical information pertaining to projects located
in Quebec, Canada, disclosed in
this news release.
About Gold Royalty Corp.
Gold Royalty Corp. is a gold-focused royalty company offering
creative financing solutions to the metals and mining industry. Its
mission is to acquire royalties, streams and similar interests at
varying stages of the mine life cycle to build a balanced portfolio
offering near, medium and longer-term attractive returns for its
investors. Gold Royalty's diversified portfolio currently consists
primarily of net smelter return royalties on gold properties
located in the Americas.
About Monarch
Monarch Mining Corporation (TSX: GBAR) (OTCQX: GBARF) is a fully
integrated mining company that owns four projects, including the
Beaufor Mine, which has produced more than 1 million ounces of gold
over the last 30 years. Other assets include the Croinor Gold,
McKenzie Break and Swanson
properties, all located near Monarch's wholly owned 750 tpd Beacon Mill.
Monarch owns 29,504 hectares (295
km2) of mining assets in the prolific Abitibi mining camp that host
a combined measured and indicated gold resource of 478,982 ounces
and a combined inferred resource of 383,393 ounces
Technical and Third-Party Information
The information herein regarding Monarch's Swanson property has been derived from the
technical report titled "NI43-101 Technical Report and Mineral
Resource Estimate on the Swanson Project, Quebec, Canada" with an effective date of
January 22, 2021. The information
herein regarding Monarch's
McKenzie Break property has been derived from the technical report
titled "NI43-101 Technical Evaluation Report on the McKenzie Break
Property" with an effective date of February
1, 2021. The information herein regarding Monarch's Croinor Gold property has been
derived from the technical report titled "NI43-101 Updated
Prefeasibility Study for the Croinor Gold Property" with an
effective date of January 19, 2018.
The information herein regarding the Beaufor has been derived from
Monarch's press release dated
March 17, 2022 as well as
Monarch's February 2022 Corporate Presentation. For
information with respect to each project, please refer to such
documents as well as the applicable technical reports and other
disclosure documents of Monarch
that are available under its profile at www.sedar.com.
Unless otherwise indicated, the technical and scientific
disclosure contained or referenced in this press release, including
any references to Mineral Resources or Mineral Reserves, was
prepared by the operator in accordance with Canadian National
Instrument 43-101, which differs significantly from the
requirements of the U.S. Securities and Exchange Commission (the
"SEC") applicable to U.S. domestic issuers. Accordingly, the
scientific and technical information contained or referenced in
this press release may not be comparable to similar information
made public by U.S. companies subject to the reporting and
disclosure requirements of the SEC.
Cautionary Statement on Forward-Looking Information:
Certain of the information contained in this news release
constitutes 'forward-looking information' and 'forward-looking
statements' within the meaning of applicable Canadian and U.S.
securities laws ("forward-looking statements"), including but not
limited to statements regarding: Monarch's expectations
regarding the timeline for recommencing production at the Beaufor
mine; the impact of the expanded royalties on the Company's
cash flow profile in the future; the expected completion of the
transaction; and the Company's future growth plans. Such
statements can be generally identified by the use of terms such as
"may", "will", "expect", "intend", "believe", "plans", "anticipate"
or similar terms. Forward-looking statements are based upon certain
assumptions and other important factors, including assumptions of
management regarding the accuracy of the disclosure of the
operators of the projects underlying the Company's projects, their
ability to achieve disclosed plans and targets, macroeconomic
conditions and commodity prices. Forward-looking statements are
subject to a number of risks, uncertainties and other factors which
may cause the actual results to be materially different from those
expressed or implied by such forward-looking statements including,
among others, any inability of the operators to execute proposed
plans, risks related to exploration, development, permitting,
infrastructure, operating or technical difficulties on any such
projects, the ability of the parties to satisfy the conditions to
completion of the proposed transaction; the influence of
macroeconomic developments, the impact of, and response of relevant
governments to, COVID-19 and the effectiveness of such responses,
the ability of the Company to carry out its growth plans and other
factors set forth in the Company's publicly filed documents under
its profiles at www.sedar.com and www.sec.gov, including its Annual
Report on Form 20-F for the year ended September 30, 2021. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking statements, except
in accordance with applicable securities laws.
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SOURCE Gold Royalty Corp.