Canada's IAMGOLD snags Quebec gold asset for $11.5 mln

Canadian gold mining company IAMGOLD Corp. is acquiring Fayolle, a gold property in western Quebec, from peer Monarch Gold in a deal valued at $11.5 million.

As part of the deal, IAMGOLD Corp. will issue $9.7 million in common shares to Monarch Gold and a $0.3 million cash payment once ownership of the asset has been transferred.

Additionally, IAMGOLD will also provide Monarch with $1.5 million in cash, 90 days after the initial transport of ore from the Fayolle deposit, which is located 35 kilometers northeast of Rouyn-Noranda, Quebec.

More so, Monarch Gold said that it plans to use the funds from the deal to advance its flagship Wasamac gold project, also in western Quebec, at a faster pace.