Yamana Gold Inc. says it has signed a deal to buy Monarch Gold Corp.’s Wasamac project and Camflo property and mill through the acquisition of all of the outstanding Monarch shares it does not already own for $152 million in cash and shares.
In connection with the plan, Monarch will first spin out to its shareholders its other mineral properties and certain other assets and liabilities to a new company .
Following the spin out, each outstanding common share of Monarch will be exchanged for 19.2 cents in cash, 0.0376 of a Yamana share and 0.20 of a share in the new company.
The new company will hold Monarch’s Beaufor mine, McKenzie Break property, Croinor Gold property, Swanson property and the Beacon Gold mill and property.
The Wasamac gold project is 15 kilometres west of Rouyn-Noranda in the Abitibi region of Quebec, while the Camflo property is 15 kilometres northwest of Val-d’Or, Que.
Wasamac has existing proven and probable mineral reserves of 1.8 million ounces of gold.