Monarch Gold Corporation (TSX: MQR) has completed the sale of its Simkar property in Quebec to fellow Canadian gold developer O3 Mining Inc. for a total consideration of more than C$1.5 million.
The Simkar property is located 20 km east of Val-d’Or and includes two mining concessions and 15 claims covering an area of five square km.
As consideration for the purchase, O3 Mining paid Monarch C$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 C$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.”
Mr Lacoste said Monarch Gold is focused on becoming a 100,000 to 200,000 ounce per year gold producer through its large portfolio of high-quality projects in the Abitibi mining camp in Quebec, Canada.
The corporation currently owns nearly 300 sq. km of gold properties, including the Wasamac deposit (measured and indicated resource of 2.6 million ounces of gold), the Beaufor, Croinor Gold, Fayolle, McKenzie Break and Swanson advanced projects and the Camflo and Beacon mills, as well as promising exploration projects. It also offers custom milling services out of its 1,600 tonne-per-day Camflo mill.
O3 Mining is an emerging consolidator of exploration properties in prospective gold camps in Canada – focused on projects in Québec and Ontario – with a goal of becoming a multi-million ounce, high-growth company.
Well-capitalised, the company holds a 100% interest in a number of properties in Quebec (435,000 hectares) and Ontario (25,000 hectares). It controls 61,000 hectares in Val D’Or and over 50 km of strike length of the Cadillac Larder break.