Yamana Gold (TSX: YRI) (NYSE, LON: AUY) is expanding its footprint in the precious metals-rich Abitibi region of Quebec, Canada, by acquiring all shares in smaller rival Monarch Gold (TSX: MQR) it does not already own for C$152 million (about $114m).
The cash and share deal gives Yamana the Wasamac property, which is about 100 km from its 50%-owned Canadian Malartic mine, as well as Camflo mill, also in Quebec.
Monarch said it would first spin off its other mineral properties and certain other assets and liabilities into a new company.
Each outstanding common share of Monarch will then be exchanged for 19.2 cents in cash, 0.0376 of a Yamana share and 0.20 of a share in the new miner.
Once the transaction is completed, Monarch’s shareholders will own 1.3% of Yamana and 100% of the new miner and Yamana will own 100% of Monarch.
The new company will hold Monarch’s Beaufor mine, McKenzie Break property, Croinor Gold property, Swanson property and the Beacon Gold asset.
The Wasamac gold project is 15km west of Rouyn-Noranda in the Abitibi region of Que., while the Camflo property is 15km northwest of Val-d’Or, Que.
Wasamac has existing proven and probable mineral reserves of 1.8 million ounces of gold.
More to come…
from MINING.COM https://ift.tt/2JxxQgt
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