Triple Flag acquires royalty on Monarch’s Beaufor gold mine in Quebec

Triple Flag Precious Metals (TSX: TFPM)  has agreed to acquire a 2.75% net smelter return (NSR) royalty on Monarch Mining’s (TSX: GBAR) Beaufor gold mine in Quebec for total cash consideration of $11.25 million.

Located 20 km northeast of Val d’Or, Beaufor is a past-producing underground mine that was operational for about 18 months from 2017 to 2019.

Monarch expects the mine to return to production by June 2022, and has already made shipments of mineralized material to the mill. There are currently 15,000 tonnes of ore ready for processing when the mill restarts.

“We are pleased to partner with Monarch as it prepares to restart production at its past-producing Beaufor mine later this year and continues to expand near-mine resources with ongoing exploration,” Shaun Usmar, founder and CEO of Triple Flag, stated in a news release. “Beaufor is located in the Abitibi mining camp in Quebec, a top-tier mining jurisdiction, and this royalty will provide Triple Flag with near-term cash flows that will persist for years to come.”

In the last mineral resource update, Monarch managed to more than double its measured and indicated resources and has since drilled a further 25,000 metres.

The Beaufor mine now has measured and indicated resources of 1.3 million tonnes grading 5.3 grams gold per tonne for 219,500 contained ounces. The inferred resource is 818,900 tonnes at 4.7 grams gold per tonne for 122,500 contained ounces of the metal.

“We are thrilled to partner with Triple Flag, a leading global partner whose investment objectives are aligned with our own values and growth objectives,”Jean-Marc Lacoste, Monarch Mining’s president and CEO, stated in a news release. 

“This new non-dilutive investment will also allow us to strengthen our financial position as we continue to prepare our Beaufor mine and Beacon mill for a restart by June 2022.”