Monarch Gold has acquired an aggregate 100% interest in the Fayolle property from Hecla Quebec and Typhoon Exploration.
Under the terms of the acquisition, Monarch has issued 12 million shares to Hecla and 3.4 million shares to Typhoon. The company also paid $500,000 to Typhoon and will pay an additional $500,000 in five months and $150,000 in 12 months.
Stretching across an area of 1,373ha, the Fayolle deposit comprises 39 mineral claims and is located approximately 35km northeast of Rouyn-Noranda, Quebec. The deposit covers Aiguebelle and Cléricy townships.
It contains an historical estimate of 548,500t graded at 5.75g/t Au, for a total of 101,326oz of gold.
The acquisition enables Monarch to advance its Beaufor, Croinor Gold, McKenzie Break and Swanson projects located near the Camflo and Beacon mills.
Monarch Gold president and CEO Jean-Marc Lacoste said: “We are pleased to have completed the acquisition of the Fayolle property and to have Hecla as one of our major shareholders.
“The addition of the Fayolle project fits perfectly with our other similarly sized advanced mining projects, including Beaufor, Croinor Gold, McKenzie Break and Swanson, which are near the Camflo and Beacon mills.
“Our strategy for this group of mining assets is to develop them with the help of mining or financial partners or by other means deemed advantageous to Monarch.”
In May, the company acquired a 4.2% stake in Unigold, a Canada-based junior natural resource company focused on the exploration and development of its gold projects in the Dominican Republic.
Monarch already owns close to 300km² of gold properties in the Abitibi mining camp, including its Wasamac deposit; the Beaufor mine; the Croinor Gold, McKenzie Break and Swanson advanced projects; the Camflo and Beacon mills, and five exploration projects.