Triple Flag Acquires 2.75% NSR Royalty on Monarch Mining’s Beaufor Mine in Quebec
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NEWS RELEASE
Toronto, February 7, 2022
Triple Flag Acquires 2.75% NSR Royalty on Monarch Mining’s
Beaufor Mine in Quebec
Triple Flag Precious Metals Corp. (with its subsidiaries, “Triple Flag” or the “Company”) (TSX:TFPM, TSX:TFPM.U)
is pleased to announce that it has entered into agreements to acquire a 2.75% net smelter return s royalty on
Monarch Mining Corporation’s (“Monarch”) (TSX:GBAR, OTCQX:GBARF) Beaufor Mine gold project in Quebec,
Canada for total cash consideration of C$11.25 million. Monarch expects production at Beaufor to recommence
by June 2022. Monarch has already made shipments of ore to the mill, and there are 15,000 tonnes of ore ready
for processing when the mill restarts.
“We are pleased to partner with Monarch as it prepares to restart production at its past-producing Beaufor Mine
later this year and continues to expand near -mine resources with ongoing exploration,” said Shaun Usmar,
Founder and CEO of Triple Flag. “Beaufor is located in the Abitibi mining camp in Quebec, a top- tier mining
jurisdiction, and this royalty will provide Triple Flag with near -term cash flows that will persist for years to come.
In the last mineral resource update, Monarch managed to more than double its measured and indicated mineral
resources and has since drilled a further 25,000 metres. We are excited about the addition of this high-quality asset
to our portfolio.”
“We are thrilled to partner with Triple Flag, a leading global partner whose investment objectives are aligned with
our own values and growth objectives,” said Jean-Marc-Lacoste, President and Chief Executive Officer of Monarch.
“This new non-dilutive investment will also allow us to strengthen our financial position as we continue to prepare
our Beaufor Mine and Beacon Mill for a restart by June 2022.”
Triple Flag will acquire the Beaufor royalty through two transactions. First, Triple Flag has entered into a binding
agreement with a th ird party to acquire an existing 2% net smelter returns royalty (with a milestone- based
stepdown to 1%) on the Beaufor Mine for C$6.75 million. Second, Triple Flag has entered into a binding agreement
with Monarch to provide Monarch with additional funding of C$4.50 million in consideration for increasing the
royalty rate to 2.75% and eliminating the step-down. The transactions are expected to close on or around February
11, 2022, and will be funded from cash on hand.
Beaufor Highlights:
Restart of established operation in Quebec providing near-term cashflow
• Beaufor is an underground gold mine located in the prolific Abitibi mining camp in Quebec.
• Provides Triple Flag with exposure to a past-producing gold mine at which Monarch is expecting to restart
production by June 2022, providing immediate cash flow . Monarch has commenced shipment of ore to
NEWS RELEASE
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the mill and has approximately 15,000 tonnes of ore ready for processing when the mill restarts .
Monarch’s objective is to begin by proces sing barren rock to recommission the plant, and then process
ore and pour the first gold bar, which it expects to take approximately 6 to 10 weeks.
• Ore is planned to be treated at Monarch’s 100% -owned 750 tpd Beacon Mill, located 10km from the
Beaufor Mine.
• The Beaufor Mine began producing in the early 1930’s and has yielded a total of over 1. 2 million ounces
of gold at an average grade of 7.34 g/t1.
Substantial Potential for Mineral Resource Expansion
• Monarch recently reported a significant increase to its mineral resource estimate in 2021: measured and
indicated mineral resources increased by 136% to 219.2 koz contained gold and inferred mineral resources
increased by 300% to 122.5 koz contained gold over previous estimates . See the below ta ble for the
current Mineral Resource Estimate. Since the date of this mineral resource estimate, Monarch has
completed more than 25,000 metres of additional drilling in 105 holes.
• Monarch recently completed a 42,500 -metre diamond drilling program to test areas around historical
high-grade intersections near existing underground infrastructure and isolated mineral resource blocks.
Given the positive results, additional holes are now being drilled to upgrade the mineral resource
classification to measured and indicated to form the basis of a future mine plan. Monarch continues
exploration and development drilling with five drill rigs underground.
Royalty Overview
• Provides Triple Flag with a right of first refusal over future royalties or streams covering the Beaufor Mine.
• Royalty covers the entirety of the Beaufor block of claims.
• Triple Flag plans to utilize existing tax pools to fully shelter expected royalty income.
About the Beaufor Mine
The Beaufor Mine is located within the Bourlamaque Batholith at the eastern contact with the Dubuisson
Formation. The Bourlamaque Batholith, a synvolcanic intrusion, is a major geological feature of the Val -d’Or
mining camp. It is a quartziferous granodiorite cut by fine -grained diorite dykes. Gold mineralization occurs in
veins associated with shear zones dipping moderately south. Mineralization is associated with quartz-tourmaline-
pyrite veins resulting from the filling of shear and extension fractures. Gold-bearing veins show a close association
with mafic dykes intruding the granodiorite. A National Instrument 43 -101 compliant mineral resource estimate
for the Beaufor Mine property was prepared for Monarch Mining in August 2021 by Charlotte Athurion, P. Geo,
BBA Inc. The mineral resource estimate is listed in the table below.
Beaufor Mine Mineral Resource Estimate2:
Category Tonnage (t) Grade (g/t Au) Contained Ounces Au (oz)
Measured 328,500 5.7 59,900
Indicated 956,400 5.2 159,300
Measured and Indicated 1,284,900 5.3 219,200
Inferred 819,900 4.7 122,500
1 Monarch Mining Corporation NI 43-101 Technical Report, Beaufor Mine, Dec. 2020
2 See Monarch Mining Corporation’s disclosure for notes associated with the mineral resource estimate.
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Figure 1: Beaufor Mine Site
Figure 2: Beaufor Mine 2021 MRE Mineralized Zones. Triple Flag’s 2.75% NSR royalty covers the entirety of Beaufor Mine Property. Source:
Monarch Mining Corporation NI 43-101 Technical Report, Beaufor Mine Project, Aug. 2021
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About Monarch
Monarch Mining Corporation (TSX: GBAR) (OTCQX: GBARF) is a fully integrated mining company that owns four
projects, including the Beaufor Mine, which has produced more than 1 million ounces of gold over the last 30
years. Other assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near Monarch’s
wholly owned 750 tpd Beacon Mill. Monarch owns 29,000 hectares (290 km2) of mining assets in the prolific Abitibi
mining camp that host a combined measured and indicated gold resource o f 478,982 ounces and a combined
inferred resource of 383,393 ounces.
Qualified Person
The scientific and technical content of this news release has been reviewed and approved by James Dendle, M.Sc.,
CGeol, Vice President, Evaluation s & Investor Relations at Triple Flag, who is a “qualified person” as defined by
National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
About Triple Flag
Triple Flag is a gold-focused streaming and royalty company, providing investors exposure to a long-life, diversified
and high -quality portfolio of streams and royalties, that generates robust free cash flows. Our business is
underpinned by a rigorous focus on asset quality, optionality, sustainability and risk management. We offer
bespoke financing solutions to the metals and mining industry. Our mission is to be a sought -after, long-term
funding partner to mining companies throughout the commodity cycle. Since our inception in 2016, we have
delivered sector-leading growth through the construction of a diversified portfolio of streams and royalties that
provides exposure primarily to gold and silver in the Americas and Australia. We have 7 9 assets, including 9
streams and 70 royalties. These investments are tied to mining assets at various stag es of the mine life cycle,
including 15 producing mines and 6 4 development and exploration stage projects. On May 26, 2021 Triple Flag
closed its initial public offering (“IPO”), which was the largest TSX-listed mining IPO since 2012 by size and market
capitalization, and the largest precious metals IPO globally by market capitalization since 2008. Triple Flag’s shares
are listed on the TSX under TFPM.U (USD listing) and TFPM (CAD listing).
Contact Information - Inquiries:
James Dendle
Vice President, Evaluations & Investor Relations
+1 (416) 304-9770
Forward-Looking Information
This news release contains “forward -looking information” within the meaning of applicable Canadian securities
laws. Forward-looking information may be identified by the use of forward -looking terminology such as “plans”,
“targets”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”,
“prospects”, “strategy”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or
terminology which states that certain actions, events or results “may”, “could”, “would”, “might”, “will”, “will be
taken”, “occur” or “be achieved”. Our assessments of, and expectations for, the anticipated closing date for the
transactions described herein, the benefits of such transactions and future periods are considered forward -
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looking information . Statements containing forward -looking information are not hist orical facts but instead
represent management’s expectations, estimates and projections regarding possible future events or
circumstances.
The forward -looking information included in this news release is based on our opinions, estimates and
assumptions in light of our experience and perception of historical trends, current conditions and expected future
developments, as well as other factors that we currently believe are appropriate and reasonable in the
circumstances. These assumptions include, but are not limited to, the following: assumptions in respect of current
and future market conditions and the execution of our business strategies, that operations, or ramp -up where
applicable, at properties in which we hold a royalty, stream or other interest, continue without further
interruption through the period, and the absence of any other factors that could cause actions, events or results
to differ from those anticipated, estimated, intended or implied. Despite a careful process to prepare and review
the forward -looking information, there can be no assurance that the underlying opinions, estimates and
assumptions will prove to be correct. Forward -looking information is also subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of activity, performance or achievements
to be materially different from those expressed or implied by such forward -looking information. Such risks,
uncertainties and other factors include, but are not limited to, those set forth under the caption “Risk Factors” in
our May 19, 2021 prospectus. For clarity, mineral resources that are not mineral reserves do not have
demonstrated economic viability and inferred resources are considered too geologically speculative for the
application of economic considerations.
Although we have attempted to identify important risk factors that could cause actual results or future events to
differ materially from those contained in forward looking information, there may be other risk factors not
presently known to us or that we presently believe are not material that could also cause actual results or future
events to differ materially from those expressed in such forward-looking information. There can be no assurance
that such information will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking
information, which speaks only as of the date made. The forward -looking information contained in this news
release represents our expectations as of the date of this news release and is subject to change after such date.
We disclaim any intention or obligation or undertaking to update or revise any forward -looking informatio n
whether as a result of new information, future events or otherwise, except as required by applicable securities
laws. All of the forward-looking information contained in this news release is expressly qualified by the foregoing
cautionary statements.
Technical and Third-Party Information
Triple Flag does not own, develop or mine the underlying properties on which it holds stream or royalty interests.
As a royalty or stream holder, Triple Flag has limited, if any, access to properties included in its asset portfolio. As
a result, Triple Flag is dependent on the owners or operators of the properties and their qualified persons to
provide information to Triple Flag or on publicly available information to prepare disclosure pertaining to
properties and operations on the properties on which Triple Flag holds stream, royalty or other similar interests.
Triple Flag generally has limited or no ability to independently verify such information. Although Triple Flag does
not believe that such information is inaccurate or incomplete in any material respect, there can be no assurance
that such third-party information is complete or accurate.