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.

Read: Caisse providing $150M in financing to Quebec-based insurer

“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.”

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

Join us on Twitter

Add a comment

Have your say on this topic! Comments that are thought to be disrespectful or offensive may be removed by our Benefits Canada admins. Thanks!

* These fields are required.
Field required
Field required
Field required