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Triple Flag Precious Metals Acquires 2.75% NSR Royalty on Monarch Mining’s Beaufor Mine in Quebec
TORONTO / Feb 07, 2022 / Business Wire / Triple Flag Precious Metals Corp. (with its subsidiaries, “Triple Flag” or the “Company”) (TSX:TFPM, TSX:TFPM.U) is ple
About this update from Triple Flag Precious Metals Corp.
[{"type":"text","content":"TORONTO / Feb 07, 2022 / Business Wire / Triple Flag Precious Metals Corp. (with its subsidiaries, “Triple Flag” or the “Company”) (TSX:TFPM, TSX:TFPM.U) is pleased to announce that it has entered into agreements to acquire a 2.75% net smelter returns royalty on Monarch Mining Corporation’s (“Monarch”) (TSX:GBAR, OTCQX:GBARF) Beaufor Mine gold project in Quebec, Canada for total cash consideration of C$11.25 million. Monarch expects production at Beaufor to recommence by June 2022. Monarch has already made shipments of ore to the mill, and there are 15,000 tonnes of ore ready for processing when the mill restarts. “We are pleased to partner with Monarch as it prepares to restart production at its past-producing Beaufor Mine later this year and continues to expand near-mine resources with ongoing exploration,” said Shaun Usmar, Founder and CEO of Triple Flag. “Beaufor is located in the Abitibi mining camp in Quebec, a top-tier mining jurisdiction, and this royalty will provide Triple Flag with near-term cash flows that will persist for years to come. In the last mineral resource update, Monarch managed to more than double its measured and indicated mineral resources and has since drilled a further 25,000 metres. We are excited about the addition of this high-quality asset to our portfolio.” “We are thrilled to partner with Triple Flag, a leading global partner whose investment objectives are aligned with our own values and growth objectives,” said Jean-Marc-Lacoste, President and Chief Executive Officer of Monarch. “This new non-dilutive investment will also allow us to strengthen our financial position as we continue to prepare our Beaufor Mine and Beacon Mill for a restart by June 2022.” Triple Flag will acquire the Beaufor royalty through two transactions. First, Triple Flag has entered into a binding agreement with a third party to acquire an existing 2% net smelter returns royalty (with a milestone-based stepdown to 1%) on the Beaufor Mine for C$6.75 million. Second, Triple Flag has entered into a binding agreement with Monarch to provide Monarch with additional funding of C$4.50 million in consideration for increasing the royalty rate to 2.75% and eliminating the step-down. The transactions are expected to close on or around February 11, 2022, and will be funded from cash on hand. Beaufor Highlights: Restart of established ...