Monarch placed under CCAA protection

16th November 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Embattled Monarch Mining has been placed under the protection of the Companies’ Creditors Arrangement Act (CCAA), with PwC appointed as the monitor to oversee the activities of the company during the process.

Laurie Gaborit, Guylaine Daigle, Michel Bouchard and Benoit Desormeaux have resigned from their positions as directors with immediate effect.

Jean-Marc Lacoste will continue to serve as a director and collaborate with creditor Investissement Québec (IQ) and monitor the implementation of the court-approved process to solicit investment and sale proposals.

IQ early this week filed a request with the Quebec Superior Court to place Monarch under CCAA protection.

Last week, Monarch cautioned that IQ intended to use its legal right to claim its assets as collateral for C$10-million in debt owed.

The gold mining company owns three projects, including the Beaufor mine which is currently on care and maintenance. Other assets include the McKenzie Break and Swanson properties, all located near the Beacon mill.

Monarch owns 14 316 ha of mining assets in the prolific Abitibi mining camp that hosts a combined measured and indicated gold resource of 478 982 oz and a combined inferred resource of 383 393 oz.

Monarch at the end of August started slowing down its mining activities at Beaufor, after a slower ramp-up of the mill following a number of mechanical and procurement issues, as well as problems with the grade reconciliation of the material stockpiled, caused by cash restrictions.

In September, the mine was placed on care and maintenance.

Edited by Creamer Media Reporter

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