The property consists of 24 claims covering approximately 5 km2 and is located immediately west of the Wasamac property
Image: Monarch Gold has acquired a mining property from Gwen Resources. Photo courtesy of Gerd Altmann from Pixabay.
MONARCH GOLD CORPORATION (“Monarch” or the “Corporation”) (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) is pleased to announce that it has acquired a mining property from Gwen Resources Ltd (“Gwen”), a private company. The property consists of 24 claims covering approximately 5 km2 and is located immediately west of the Wasamac property. The Wasamac property is wholly owned by Monarch and lies 15 km west of Rouyn-Noranda, in the Abitibi-Témiscamingue region of Quebec.
“The purpose of this transaction was primarily to secure the location of Wasamac’s future mining infrastructure, for which we have just started the mining permit application process,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “When we had a closer look at the new property, however, we realized that it might have interesting exploration potential. In fact, the fault that hosts the Wasamac deposit seems to extend onto the property, which has not been the subject of work in this area. In addition, the main envelope of the Wasamac deposit lies about 500 metres from the property boundary, which makes the property even more interesting. We plan to conduct a preliminary exploration program to better assess its gold potential.”
As consideration for this acquisition, Monarch issued 1 million common shares of its share capital to Gwen and will pay Gwen a total of $150,000 in cash, consisting of $75,000 on closing of the transaction and $75,000 six months after closing. Gwen will also be entitled to a 2.5% net smelter return (NSR) on the property. Monarch may buy back a 1.25% NSR for $2 million in cash. All common shares issued to Gwen are subject to a four month and one day hold period and, in addition, 500,000 of such shares are escrowed for a period of one year.
The transaction is subject to regulatory approval.
Source: Company Press Release