Quebec injects $13.5 million into Monarch Mining to help it reopen Beaufor – The Northern Miner

The Canadian province of Quebec has granted Monarch Mining (TSXV: GBAR; US-OTC: GBARF) a $13.5 million senior secured term loan agreementto help the companyrestart the Beaufor gold mine and Beacon mill,20 km east of Val-dOr.

The three-year term loan agreement withInvestissement Quebecbears interest at a rate of 6%a year until the restart of the mine and mill, 5% during the first year of production and 4% for the subsequent years.

Currently on care and maintenance, Beaufor has produced over 1.1 million ounces of gold at an average grade of 7.5 grams gold pertonnesince first production in the 1930s.

Before suspending operations in June 2019,itemployed 150 people at the mine and 30 at the 750 tonne-per-day mill.

Monarch, which acquired the operation in 2017, estimates that it will be creating more than 100 new jobs when its facilities become fully operational next year.

The revival of the Beaufor mine and Beacon mill is an initiative that will support the economic recovery in Abitibi-Tmiscamingue while continuing to develop our expertise in the gold sector, Eric Girard, the provinces finance minister and minister of the economy and innovation, said in a media statement.

Beaufor has measured and indicated resources of 431,100 tonnes grading 6.68 grams gold per tonne for 92,700 ounces of gold. An updated resource, based on an ongoing 42,500-metre drill program, is slated to be released in the third quarter.

Monarch Mining is a spinout of assets from Monarch Gold, whichYamana Gold (TSX: YRI; NYSE, LON: AUY) acquired in a $152 million cash and shares deallast November.The transaction gave YamanatheWasamacproperty, which is about 100 km from its50%-owned Canadian Malartic mine, as well asCamflomill, also in Quebec.

Monarch Minings other assets include the McKenzie Break project and the Croinor past-producing mine, both in Quebecs Val-dOr area.

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Quebec injects $13.5 million into Monarch Mining to help it reopen Beaufor - The Northern Miner