Monarch Mining under creditor protection in last-ditch effort to avoid bankruptcy

Struggling Canadian gold miner Monarch Mining (TSX:GBAR; OTCQB:GBARF) has been placed under the protection of the Companies’ Creditors Arrangement Act (CCAA), with PwC appointed as the monitor to oversee the company’s activities during the process.

Laurie Gaborit, Guylaine Daigle, Michel Bouchard and Benoit Desormeaux have resigned from their positions as directors with immediate effect, the Toronto-based company said.

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, a giant Quebec government fund that finances some 1,600 economic projects of all kinds in the province with more than $2.3 billion, may seize Monarch’s primary asset, the past-producing Beaufor mine.

Beaufor, about 20 km northeast of Val-d’Or in the Abitibi gold belt, is already on care and maintenance. Monarch’s other assets include the McKenzie Break and Swanson properties, all located near Monarch’s Beacon mill with a design capacity of 750 tonnes per day. The mill is also under care and maintenance.

In total, Monarch owns nearly 143 km² of assets across the Abitibi region, hosting a combined measured and indicated gold resource of 478,982 oz. and inferred resource of 383,393 oz.

The company sold its Croinor gold property this year to Probe Gold (TSX:PRB) for $4.5 million in cash and shares.

THIS ARTICLE ORIGINALLY APPEARED ON MINING.COM