Combined transaction in the form of cash, shares and warrants valued at more than $1.5 million, with upside potential
MONARCH GOLD CORPORATION (“Monarch” or the “Corporation”) (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) is pleased to announce that it has completed the sale of its Simkar property to O3 Mining Inc. (“O3 Mining”). The Simkar property is located 20 km east of Val-d’Or and includes two mining concessions and 15 claims covering an area of 5 km2.
As consideration, O3 Mining paid Monarch $140,000 in cash and issued 435,000 common shares of its share capital and 435,000 warrants. Each warrant entitles Monarch to subscribe for one additional common share of O3 Mining at a price of $4.20 for a period of three years following the closing of the transaction.
“We are very pleased to have entered into this agreement for the Simkar property with a company of the calibre of O3 Mining,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “O3 Mining has an outstanding technical team, led by José Vizquerra Benavides, and is capable of taking the Simkar project to a whole new stage of development. The structure of this transaction will enable us to benefit from O3 Mining’s upside potential while continuing to develop our Wasamac flagship project, as well as our five other advanced gold projects.”
The transaction is subject to regulatory approval.
Source: Company Press Release