Caisse buying return royalty on gold at Quebec-based mine
BY Benefits Canada Staff | May 8, 2020
The Caisse de dépôt et placement du Québec is purchasing a three per cent net smelter return royalty on gold production at Monarch Gold Corp.’s Beaufor mine in Quebec for $5 million.
The $5 million will be payable to Monarch in two instalments — $3 million upon closing of the transaction and an additional $2 million once Monarch has completed a total of 15,000 metres of drilling on the Beaufor property or within 60 days of the Beaufor mine going into production.
“With CDPQ’s investment, Monarch can pursue its exploration plan, which could ultimately lead to the re-opening of the Beaufor mine in Abitibi-Témiscamingue,” said Kim Thomassin, executive vice-president and head of Quebec investments and stewardship investing at the Caisse, in a press release. “This transaction will pave the way for the company to integrate new artificial intelligence technology, which is in line with our desire to encourage more companies from so-called traditional sectors to take the digital turn to improve their performance.”
Jean-Marc Lacoste, president and chief executive officer of Monarch, said the investment could eventually give the Beaufor mine a second life. “This investment is a turning point for the Beaufor mine, which still has considerable high-grade gold potential, as we demonstrated during our last drilling campaign, in 2018.”
This article originally appeared on CIR’s companion site, Benefitscanada.com. Read the full story here.