Monarch Mining stock plunges as Quebec fund may seize Beaufor mine

Monarch Mining (TSX: GBAR) shares plummeted on Friday after a giant Quebec government fund recalled C$10 million in loans.

Investissement Québec, which finances some 1,600 economic projects of all kinds in the province with more than C$2.3 billion, may seize Monarch’s primary asset, the past-producing Beaufor mine, Monarch said in a release on Friday. The company said it is assessing its options.

The stock traded at half a cent apiece on Friday afternoon, after opening the session at C$0.015. Its market value fell to C$1.2 million. For the year, Monarch’s shares were down by 93%.

Beaufor, about 20 km northeast of Val-d’Or in the Abitibi gold belt, is currently 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 approximately 143 sq. km 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 C$4.5 million in cash and shares. That project had a measured and indicated resource of 187,900 oz. at 6.47 grams gold per tonne and inferred mineral resource of 39,800 oz. at 6.19 grams gold.