Yamana Gold takes over Monarch
The transaction will cost the mining giant roughly 152m Dollars.
Yamana Gold (NYSE: AUY) agrees to acquire the Wasamac and Camflo assets in Quebec's Abitibi area from Monarch Gold (OTCQX: MRQRF) for C $ 152 million in cash and shares. Yamana says the Wasamac underground gold project, which is ~ 100 km from its 50% owned Canadian Malartic mine, fits well with its exploration and development strategy.
The company says the geological characteristics of the Wasamac ore body suggest the potential for an underground mine of the same size, grade, production and cost as its Jacobina mine in Brazil. The Wasamac Project has existing proven and probable mineral reserves of 1.8 million ounces of gold grading 2.56 g / t. Yamana Gold reported better than expected adjusted Q3 results last week and the highest operating cash flow since 2015, up more than 300% year over year.