Monarch needs more cash before year-end to meet obligations
Embattled miner Monarch Gold has been in contact with several parties regarding its assets as part of a strategic review evaluating a range of alternatives.
The company’s board last week formed a special committee to lead the strategic review, which could include the sale of part or all of its assets, a merger or other business combination or a potential investment in Monarch.
Monarch in September placed its Beaufor gold mine, in Quebec, on care and maintenance, owing to financial and operational challenges.
The TSX-listed miner said on Thursday that it would need additional financing before the end of 2022 to improve working capital, meet debt payment obligations and reach payment agreements with suppliers.
“Management has made good progress in its discussions with suppliers and debt holders. As well, a number of selected parties have been contracted by management regarding the corporation’s assets,” Monarch said.
The firm reported a net loss of C$22.32-million in the September quarter.
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