As per the deal, Eloro will receive a 1.5% net smelter return (NSR) on Monarques’ wholly-owned Tex-Sol, Regcourt, Plator I, Plator II, Plator III, Plator IV and Plator V properties and a 1.5% NSR on the Simkar property in addition to 0.5% NSR on the Louvicourt property.
Monarques president and CEO Jean-Marc Lacoste said, "This transaction allows us to consider the possibility of a joint venture to develop the full potential of the Simkar project."
The agreement allows Monarques to buy back 0.5% NSR, excluding the Louvicourt property, by paying Eloro $1m.
Monarques acquired 50% interest in the Simkar project in the fall of 2013. As of May 2014, it had a 57% interest in the property.
Simkar project covers an area of 4.05km2 and hosts two mining concessions along with 11 mineral claims.
