02 Nov Yamana announces C$152 million deal for Québec-based Monarch Gold
Yamana Gold will soon have ownership of the Wasamac property and Camflo mill in the Abitibi region of Québec after announcing a deal to acquire the outstanding shares of Monarch Gold for C$152 million.
The Americas-focused miner said the underground Wasamac gold project fits well into its exploration and development strategy, and is only about 100 km from its 50%-owned Canadian Malartic mine, to which it possesses many geological similarities.
In addition, the geological characteristics of the Wasamac orebody suggest that is has the potential to be an underground mine of the same scale, grade, production, and costs as Yamana’s Jacobina mine in Brazil.
Yamana focuses on developing properties with mineral inventories of more than 1.5 million ounces (Moz) that can support production levels of more than 150 000 oz per year and can be built with internal cash flows.
The Wasamac project has existing proven and probable mineral reserves of 1.8 Moz of gold at 2.56 g/t. The deal also includes the Camflo property, located 15 km Northwest of Val-d’Or, including the old Camflo mine and permitted mill.
“The acquisition of the Wasamac and Camflo properties adds to Yamana’s pipeline of organic opportunities, significantly enhancing the company’s future growth prospects,” the company said.
Last week, Yamana reported strong Q3 results, including its highest operating cash flows since 2015 and a year-on-year cash flow increase of 300%. The company also declared a 50% increase in its annual dividend.