The mine is to enter care and maintenance for an undetermined period.
The announcement follows Monarch announcing on 31 August that the ramp-up of the Beacon mill was going slower than expected due to mechanical and procurement issues, as well as problems with the grade reconciliation of the material stockpiled.
"We understand that this situation is difficult for our shareholders, employees and stakeholders," the company's president and CEO Jean-Marc Lacoste said.
Monarch's share price slumped 42% day on day to C$0.07 (US$0.05) on 29 September. In the weeks following the production of the mine's first gold bar, the company's share price climbed to as high as C$0.52.
"We will continue to work towards resolving the present situation at the operations while seeking strategic and financial alternatives to maximise stakeholder value," Lacoste said.
Monarch is planning to process an estimated stockpile of 20,000 tonnes to generate funds prior to placing the 750 tonnes per day Beacon Mill on care and maintenance.
The company has invested about C$20 million in refurbishing the Beacon mill.
It also placed the Beaufor mine under care and maintenance in June 2019 - citing issues including falling grades, a soft gold price, and labour difficulties.
Beaufor has total measured and indicated resources of 219,2000 ounces.
The company has a market capitalisation of C$7.71 million.