The Canadian province of Quebec has granted Monarch Mining (TSX-V: GBAR) a $13.5 million senior secured term loan agreement to help the company restart the Beaufor gold mine and Beacon mill, 20 km east of Val-d’Or.
The three-year term loan agreement with Investissement Quebec bears interest at a rate of 6% a year until the restart of the mine and mill, 5% during the first year of production and 4% for the subsequent years.
Currently on care and maintenance, Beaufor has produced over 1.1 million ounces of gold at an average grade of 7.5 grams gold per tonne since first production in the 1930s.
Before suspending operations in June 2019, it employed 150 people at the mine and 30 at the 750 tonne-per-day mill.
Currently on care and maintenance, Beaufor has produced over 1.1 million ounces of gold since first production in the 1930s
Monarch, which acquired the operation in 2017, estimates that it will be creating more than 100 new jobs when its facilities become fully operational next year.
“The revival of the Beaufor mine and Beacon mill is an initiative that will support the economic recovery in Abitibi-Témiscamingue while continuing to develop our expertise in the gold sector,” Quebec Finance, Economy and Innovation Minister Eric Girard, said in the statement.
Beaufor has measured and indicated resources of 431,100 tonnes grading 6.68 grams gold per tonne for 92,700 ounces. But an updated resource, based on an ongoing 42,500-metre drill program, is slated to be released in the third quarter.
Monarch Mining is a spinout of assets from Monarch Gold, which Yamana Gold (TSX: YRI) (NYSE, LON: AUY) acquired in a C$152-million cash and shares deal last November. The transaction gave Yamana the Wasamac property, which is about 100 km from its 50%-owned Canadian Malartic mine, as well as Camflo mill, also in Quebec.
Monarch Mining’s other assets include the McKenzie Break project and the Croinor past-producing mine, both in the Val-d’Or area.