Monarch Gold sells Fayolle gold project in Quebec to IAMGOLD

Monarch Gold has wrapped up its CAD11.5 million sale of its Fayolle gold project in Quebec, Canada to rival Canadian gold mining company IAMGOLD.

The Fayolle property is said to be an advanced high-grade gold asset comprising 39 mineral claims that span an area of 1,373 hectares across the Aiguebelle and Cléricy townships, located nearly 35 km northeast of Rouyn-Noranda.

The 2019 mineral resource estimate of Fayolle gold project for a combined pit-constrained and underground scenario at cut-off grades are 0.9 g/t Au (in-pit) and 2.2 g/t Au (underground).

Following the close of the deal, Monarch Gold said that it holds nearly CAD20 million in cash and short-term investments.

At the time of entering the deal, Jean-Marc Lacoste – President and CEO of Monarch Gold said: “This is a profitable short-term transaction for Monarch, allowing us to significantly strengthen our financial position without dilution and with the potential for appreciation if the share value of IAMGOLD increases, especially in the current gold bull market.

“While Fayolle has potential, the fact remains that Wasamac is our priority project and the recent signing of the MOU with Glencore Canada has raised the outlook of our 2.6-million-ounce gold flagship project, which includes 1.8 million ounces of reserves. The funds from this transaction will allow us to advance the Wasamac project at a faster pace, while simultaneously pursuing exploration programs on our Beaufor and McKenzie Break properties.”