Monarch Gold Corp. (TSX: MQR) today announced the signing of a letter of intent to acquire the Fayolle property from Hecla Quebec Inc., formerly known as Aurizon Mines Ltd. and now a subsidiary of Hecla Mining Company (NYSE: HL), and its partner Typhoon Exploration Inc. (TSXV: TYP). Hecla currently owns the Casa Berardi underground mine in western Quebec, one of the top gold mines in Canada.
The Fayolle property covers 1,373 hectares of land comprising 39 mineral claims in Aiguebelle and Cléricy townships, Quebec, approximately 35 km northeast of Rouyn-Noranda. It encompasses multiple gold showings including the Fayolle deposit that was discovered in 1958.
According to a mineral resource estimate provided by Typhoon in 2012, the Fayolle deposit contains indicated resources of 548,500 tonnes grading 5.75 g/t gold, for a total of 101,326 ounces of gold.
As part of the transaction, Monarch will issue 12 million shares at C$0.25 each (total value of C$3 million) to Hecla to acquire Hecla’s 50% interest in the property. For the remaining 50% interest, Monarch will pay C$1.15 million as well as issue 3.4 million shares at C$0.25 each (total value of C$850,000) – for total proceeds of $2 million – to Typhoon.
The potential acquisition of Fayolle property will add to Monarch’s existing portfolio of four advanced-stage gold projects and five other exploration-stage projects in the province of Quebec.
Source: Mining.com
