[caption id="attachment_1003743076" align="aligncenter" width="550"] Monarch Gold's Beaufor Mine Credit: Monarch Gold
(TSX: YRI; NYSE: AUY; LSE: AUY) is expanding its footprint in the precious metals-rich Abitibi region of Quebec, Canada, by acquiring all shares in smaller rival Monarch Gold
(TSX: MQR) it does not already own for $152 million (about US$114 million).
The cash and share deal gives Yamana the Wasamac property, which is about 100 km from its 50%-owned Canadian Malartic mine, as well as the Camflo mill, also in Quebec.
Monarch said it would first spin off its other mineral properties and certain other assets and liabilities into a new company.
Each outstanding common share of Monarch will then be exchanged for 19.2¢ in cash, 0.0376 of a Yamana share and 20¢ of a share in the new miner.
Once the transaction is completed, Monarch’s shareholders will own 1.3% of Yamana and 100% of the new miner, and Yamana will own 100% of Monarch.
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