Off & Running: 5 New Royalties in Prolific Abitibi Greenstone Belt

 

Gold Royalty Corp. (NYSE-American: GROY) — currently trading around US$5.00 per share — has entered into a definitive agreement with Monarch Mining to acquire five royalties in the prolific Abitibi greenstone belt, Quebec, Canada, for total cash consideration of C$15 million. 

Monarch is in the process of reopening the Beaufor mine which boasts past production of 1 million-plus gold ounces at an average grade of 7.50 grams per tonne; the mine is fully permitted and offers strong exploration upside. 

The royalty is expected to start cash flowing next year, which should translate to a relatively quick payback for Gold Royalty as Monarch aims for a production restart in June 2022. 

Gold Royalty CEO, David Garofalo — whom you’re about to hear more from — commented via press release

"We are excited to be partnering with Jean-Marc Lacoste and the strong technical team at Monarch to assist in the reopening of the Beaufor mine and to add additional high quality royalties to our portfolio. These assets will not only add potential near term cash flow to our Company, but also a strong pipeline of development and exploration projects located in Quebec, a very favourable mining jurisdiction. The Monarch royalties nicely complement the pro-forma portfolio of over 100 royalties in the Americas resulting from our previously announced acquisition of Ely Gold Royalties Inc. (“ELY”) (TSX-V: ELY). It has been a very eventful start to our journey of growing into a leading royalty and streaming company. This announcement follows a string of exciting events for us and we are focused on driving continued success capitalizing on the experience and depth of our board and management team, strong balance sheet and capital markets presence.”

In addition to the Beaufor/Beacon royalty, the transaction also includes royalties on Monarch’s Croinor Gold, McKenzie Break, and Swanson properties — all in the Abitibi. Croinor is a past producer, McKenzie Break is an advanced exploration property, and Swanson is an earlier stage exploration property. 

All three properties are located in close proximity to Monarch’s fully permitted, 750 tonne per day mill — providing Gold Royalty with longer-term exposure to the Abitibi greenstone belt by way of Monarch’s strong exploration position and experience in the district. 

Needless to say, the company is off to an impressive start as it lays the early groundwork of becoming a leading royalty and streaming company in the sub-US$1 billion category. 

Our own Gerardo Del Real of Junior Resource Monthly sat down with Gold Royalty CEO, David Garofalo, to discuss the latest acquisition and the plans and process for achieving its stated objectives. CLICK HERE TO LISTEN. Transcript is also available. 

Also click here for our feature report on Gold Royalty Corp. 

Yours in profits,

 

Mike Fagan

Mike Fagan
Editor, Resource Stock Digest


Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.


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