Monarch Announces Debt Settlement
November 15 2022 - 7:35AM
MONARCH MINING CORPORATION
(“
Monarch” or
the “
Corporation”) (TSX: GBAR) (OTCQX: GBARF)
announced today that it has reached agreements with certain of its
creditors for more than $9.3 million (the “
Debt
Settlement”). The Corporation will issue 36,383,805 common
shares at a price of $0.075 per share and defer the payment of
certain amounts to 2023, 2024 and 2025. This will allow Monarch to
reduce its accounts payable and allow time for the strategic review
of its business.
In addition, Monarch returned the $6 million
that it held in trust to Investissement Québec, reducing the amount
owing to $12.5 million.
Finally, the Corporation also reduced certain
accounts payable by returning merchandise that it had in inventory
to their suppliers.
“We are currently going through a difficult
period at Monarch, and we would like to sincerely thank our
creditors for their patience and flexibility,” said Jean-Marc
Lacoste, President and Chief Executive Officer of Monarch.
The share-based debt settlements are subject to
regulatory approval. All common shares issued pursuant to the Debt
Settlement are subject to a hold period of four months plus a day
from the date of issuance of the common shares in accordance with
applicable securities legislation.
About
MonarchMonarch Mining Corporation (TSX: GBAR)
(OTCQX: GBARF) is a gold mining company that owns four projects,
including the Beaufor Mine, which is currently on care and
maintenance and has produced more than 1 million ounces of gold
over the last 30 years. Other assets include the Croinor Gold,
McKenzie Break and Swanson properties, all located near Monarch’s
wholly owned Beacon Mill with a design capacity of 750 tpd. Monarch
owns 29,504 hectares (295 km2) of mining assets in the prolific
Abitibi mining camp that host a combined measured and indicated
gold resource of 666,882 ounces and a combined inferred resource of
423,193 ounces.
Forward-looking statements All
statements, other than statements of historical fact, contained in
this press release including, but not limited to those describing
the timeline of the initiatives described in this press release,
the entering into or more sale agreements, debt settlement
agreements, merger or other combination business agreements, the
Corporation’s commitments and initiatives outlined in the press
release, the intended results of the initiatives described in this
press release, the positive impact of the foregoing on project
economics, and those statements which are discussed under the
“About Monarch” paragraph and elsewhere in the press release which
essentially describe the Corporation’s outlook and objectives,
constitute “forward-looking information” or “forward-looking
statements” (collectively, “forward-looking statements”) within the
meaning of Canadian, and are based on expectations, estimates and
projections as of the time of this press release. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by the Corporation as
of the time of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. These estimates and assumptions may prove to be
incorrect.
Forward-looking statements are subject to known
or unknown risks and uncertainties that may cause actual results to
differ materially from those anticipated or implied in the
forward-looking statements. Risk factors that could cause actual
results or events to differ materially from current expectations
include, among others, the Corporation's ability to continue as a
going concern, the Corporation being a going concern able to
realize its assets and discharge its liabilities in the normal
course of business as they come due into the foreseeable future,
the generation of interest for its review of a range of
alternatives, in either the sale of part or all of the Company or
its assets, a merger or other business combination with another
party, a potential investment in Monarch, a debt restructuring, or
other strategic initiatives with the goal of maximizing return in
respect of the Company’s assets, the ability of the Corporation to
successfully implement its strategic initiatives and whether such
strategic initiatives will yield the expected benefits, the
availability of financing or financing on favorable terms for the
Corporation, the business conditions of the Corporation will not
change In a materially adverse manner, expectations that the
business of the Corporation will continue in the ordinary course,
litigation as well as cash flow and capital structure risks and
general business risks. A further description of risks and
uncertainties can be found in Monarch's Annual Information Form
dated September 28, 2022, including in the section thereof
captioned “Risk Factors”, which is available on SEDAR at
www.sedar.com. Unpredictable or unknown factors not discussed in
this Cautionary Note could also have material adverse effects on
forward-looking statements.
Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, actual results
to differ materially from those expressed or implied in any
forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are
provided for the purpose of providing information about
management’s expectations and plans relating to the future. The
Corporation disclaims any intention or obligation to update or
revise any forward-looking statements or to explain any material
difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
manuals of the Toronto Stock Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Further information regarding the Corporation is
available in the SEDAR database (www.sedar.com) and on the
Corporation’s website at: www.monarchmining.com.
FOR MORE INFORMATION:
Jean-Marc Lacoste |
1-888-994-4465 |
President and Chief Executive
Officer |
jm.lacoste@monarchmining.com |
|
|
Mathieu Séguin |
1-888-994-4465 |
Vice President, Corporate
Development |
m.seguin@monarchmining.com |
www.monarchmining.com
Table 1: Monarch combined gold
resources
Mineral resource estimates |
Tonnes(metric) |
Grade (g/t Au) |
Ounces |
|
Beaufor Mine1 |
|
|
|
|
Measured Resources |
328,500 |
5.7 |
59,900 |
|
Indicated Resources |
956,400 |
5.2 |
159,300 |
|
Total Measured and
Indicated |
1,284,900 |
5.3 |
219,200 |
|
Total Inferred |
818,900 |
4.7 |
122,500 |
|
Croinor Gold2 |
|
|
|
|
Measured Resources |
97,700 |
6.24 |
19,600 |
|
Indicated Resources |
805,900 |
6.50 |
168,300 |
|
Total Measured and
Indicated |
903,600 |
6.47 |
187,900 |
|
Total Inferred |
200,100 |
6.19 |
39,800 |
|
McKenzie Break3 |
|
|
|
|
In-pit |
|
|
|
|
Total Indicated |
1,441,377 |
1.80 |
83,305 |
|
Total Inferred |
2,243,562 |
1.44 |
104,038 |
|
Underground |
|
|
|
|
Total Indicated |
387,720 |
5.03 |
62,677 |
|
Total Inferred |
1,083,503 |
4.21 |
146,555 |
|
Swanson4 |
|
|
|
|
In-pit |
|
|
|
|
Total Indicated |
1,864,000 |
1.76 |
105,400 |
|
Total Inferred |
29,000 |
2.46 |
2,300 |
|
Underground |
|
|
|
|
Total Indicated |
91,000 |
2.86 |
8,400 |
|
Total Inferred |
87,000 |
2.87 |
8,000 |
|
TOTAL COMBINED5Measured
and Indicated ResourcesInferred
Resources |
|
|
666,882423,193 |
|
|
1 Source: NI
43-101 Technical Report and Mineral Resource Estimate for the
Beaufor Mine Project, October 13, 2021, Val-d’Or, Québec, Canada,
Charlotte Athurion, P. Geo., Pierre-Luc Richard, P. Geo., and Dario
Evangelista, P. Eng., BBA Inc. 2 Source: NI 43-101 Technical Report
and Mineral Resource Estimate for the Croinor Gold Project, June
17, 2022, Val-d’Or, Québec, Canada, Olivier Vadnais-Leblanc,
P.Geo., Carl Pelletier, P.Geo. and Eric Lecomte, P.Eng., InnovExplo
Inc.3 Source: NI 43-101 Technical Evaluation Report on the McKenzie
Break Property, October 14, 2021, Val-d’Or, Québec, Canada,
Alain-Jean Beauregard, P.Geo., Daniel Gaudreault, P.Eng., of
Geologica Groupe-Conseil Inc., and Merouane Rachidi, P.Geo., Claude
Duplessis, P.Eng., of GoldMinds GeoServices Inc.4 Source: NI 43-101
Technical Report and Mineral Resource Estimate for the Swanson
Project, January 22, 2021, Val-d’Or, Québec, Canada, Christine
Beausoleil, P. Geo. and Alain Carrier, P. Geo., InnovExplo Inc.5
Numbers may not add due to rounding. |
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