Monarch completes sale of Simkar project to O3 Mining
Monarch Gold (TSX: MQR) completed the sale of its Simkar property in Quebec to O3 Mining (TSX.V: OIII) for $140,000 in cash and 435,000 common shares of O3’s share capital and 435,000 warrants.
In a press release, the companies explained that 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.
“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,” Jean-Marc Lacoste, Monarch’s president and CEO, said in the media brief. “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 Simkar property is located 20 kilometres east of Val-d’Or and includes two mining concessions and 15 claims covering an area of 5 square kilometres.