Monarch said it would first spin off its other mineral properties and certain other assets and liabilities into a new company.
Each outstanding common share of Monarch will then be exchanged for 19.2 cents in cash, 0.0376 of a Yamana share and 0.20 of a share in the new miner.
Once the transaction is completed, Monarch’s shareholders will own 1.3% of Yamana and 100% of the new miner and Yamana will own 100% of Monarch.
The new company will hold Monarch’s Beaufor mine, McKenzie Break property, Croinor Gold property, Swanson property and the Beacon Gold asset.
The Wasamac gold project is 15km west of Rouyn-Noranda in the Abitibi region of Que., while the Camflo property is 15km northwest of Val-d’Or, Que.
Wasamac has existing proven and probable mineral reserves of 1.8 million ounces of gold.
More to come…
