Stifel GMP Provides Independent Fairness Opinion to Monarch Gold in its Acquisition by Yamana Gold

November 2, 2020

On November 2, 2020, Monarch Gold Corporation (“Monarch”) (TSX:MQR; OTCQX:MRQRF; FRANKFURT:MR7) announced that it has entered into a definitive agreement with Yamana Gold Inc. (“Yamana), pursuant to which Yamana will acquire the Wasamac property and the Camflo property and mill through the acquisition of all of the outstanding shares of Monarch (not already owned by Yamana) for total consideration of approximately C$200 million or C$0.63 per Monarch share on a fully diluted basis, under a plan of arrangement. The total consideration to be paid by Yamana to the shareholders of Monarch is approximately $60.8 million in cash and $91.2 million in Yamana shares. Under the plan of arrangement, Monarch will first complete a spin-out to its shareholders, through a newly-formed company (“SpinCo”) that will hold its other mineral properties and certain other assets and liabilities of Monarch, by issuing as consideration common shares of SpinCo (the “SpinCo Shares”) having an implied value of approximately C$47.5 million (the “Spin-Out”).

The Board of Directors of Monarch retained Stifel GMP as its financial advisor to prepare an independent fairness opinion.  Miller Thomson advised Stifel GMP with a team that included Lawrence Wilder and Brandon Meyer (Capital Market & Securities), and Madison Derraugh (Student).