In counterpart, Monarques transfers ownership of 11 mining properties, located in the James Bay area, and has undertaken to issue in favour of Elements 500,000 common shares of the Corporation ("Common Shares") at a deemed price of 0.15$ per Common Share.
The Common Shares will be subject to a twelve month period of voluntary holding. 250,000 Common Shares will be released six months following the closing date of the transaction and the other 250,000 after the twelve month period.
The transferred properties are: Lemare, Caumont, Nisk, Bourier, Duval, Valiquette, Arques, Dumulon, Rosebay and Amiral. The purchase offer is subject to the approval of the regulatory authorities and the acquisition of an undivided interest of 50 % in the Croinor property owned by X-Ore Resources Inc.
In parallel, Monarques had announced the last October 18th, by press release, that it had signed an agreement with X-Ore Resources Inc. to acquire the other 50 % undivided interest in the Croinor property. At the closing of the transaction, the Corporation will own 100 % interest of the Croinor property.
"It was time for innovation and I believe that this transaction was necessary in the current market. In 2013, we have focused our acquisition solely in the Val d’Or area. With this transfer of properties, we have shifted assets on which no work was planned in the mid range term, to assets (Croinor) that consolidates and strengthens our position in Val d’Or. This agreement with Elements will be of a mutual benefit for both our companies." commented Jean-Marc Lacoste, President and Chief Executive Officer of Monarques.
