Monarch Signs Royalty Buyback Option Agreement With Gold Royalty
24 Julho 2023 - 8:35AM
MONARCH MINING CORPORATION
(“
Monarch” or
the “
Corporation”) (TSX: GBAR) (OTCQB:
GBARF) has entered into a royalty buyback option agreement
with Gold Royalty Corp. (“
Gold Royalty”) regarding
the McKenzie Break, Swanson and Croinor properties (the
“
Property”).
Monarch will have the right, exercisable for a
period of 24 months, to repurchase up to a 1% NSR for each of the
McKenzie Break royalty, Swanson royalty and Croinor royalty (the
“Buyback Right”) for the consideration provided
below (the “Buyback Consideration”). In order to
exercise the Buyback Right, Monarch, together with the eventual
purchaser or purchasers (the “Purchaser”) of any
Property, must deliver to Gold Royalty a written notice of election
to exercise such right, with an agreement that would establish the
terms and conditions of the exercise of such option to be entered
into among Gold Royalty and the Purchaser.
The Buyback Consideration is payable in cash or
in voting shares of the Purchaser at the sole election of Gold
Royalty and is as follows:
(a) For a period of 12 months following the
buyback (the “Initial Period”):
- $2 million in cash for each Property for which the Buyback
Right is exercised; or
- $2.5 million in voting shares of the Purchaser.
(b) For a period starting on the first day
following the end of the Initial Period and ending on the 24th
month following the buyback:
- $2.5 million in cash for each Property for which the Buyback
Right is exercised; or
- $3 million in voting shares of the Purchaser.
The issuance of voting shares by the Purchaser
to Gold Royalty might be subject to regulatory approval.
About MonarchMonarch Mining
Corporation (TSX: GBAR) (OTCQB: GBARF) is a gold mining company
that owns four projects, including the Beaufor Mine, which is
currently on care and maintenance and has produced more than 1
million ounces of gold over the last 30 years. Other assets
include the Croinor Gold, McKenzie Break and Swanson properties,
all located near Monarch’s wholly owned Beacon Mill with a design
capacity of 750 tpd. Monarch owns 29,504 hectares (295 km2) of
mining assets in the prolific Abitibi mining camp that host a
combined measured and indicated gold resource of 666,882 ounces and
a combined inferred resource of 423,193 ounces.
Forward-looking
statements All statements, other than statements of
historical fact, contained in this press release including, but not
limited to those describing the entering into royalty buyback
option agreements, the intended results of the initiatives
described in this press release, and generally those statements
which are discussed under the “About Monarch” paragraph and
elsewhere in the press release which essentially describe the
Corporation’s outlook and objectives, constitute “forward-looking
information” or “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of Canadian, and
are based on expectations, estimates and projections as of the time
of this press release. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by the Corporation as of the time of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. These
estimates and assumptions may prove to be incorrect.
Forward-looking statements are subject to known
or unknown risks and uncertainties that may cause actual results to
differ materially from those anticipated or implied in the
forward-looking statements. Risk factors that could cause actual
results or events to differ materially from current expectations
include, among others, the Corporation's ability to continue as a
going concern, the Corporation being a going concern able to
realize its assets and discharge its liabilities in the normal
course of business as they come due into the foreseeable future,
the generation of interest for its review of a range of
alternatives, in either the sale of part or all of the Company or
its assets, a merger or other business combination with another
party, a potential investment in Monarch, a debt restructuring, or
other strategic initiatives with the goal of maximizing return in
respect of the Company’s assets, the ability of the Corporation to
successfully implement its strategic initiatives and whether such
strategic initiatives will yield the expected benefits, the
availability of financing or financing on favorable terms for the
Corporation, the business conditions of the Corporation will not
change In a materially adverse manner, expectations that the
business of the Corporation will continue in the ordinary course,
litigation as well as cash flow and capital structure risks and
general business risks. A further description of risks and
uncertainties can be found in Monarch's Annual Information Form
dated September 28, 2022, including in the section thereof
captioned “Risk Factors”, which is available on SEDAR at
www.sedar.com. Unpredictable or unknown factors not discussed in
this Cautionary Note could also have material adverse effects on
forward-looking statements.
Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, actual results
to differ materially from those expressed or implied in any
forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are
provided for the purpose of providing information about
management’s expectations and plans relating to the future. The
Corporation disclaims any intention or obligation to update or
revise any forward-looking statements or to explain any material
difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
manuals of the Toronto Stock Exchange) accepts responsibility for
the adequacy or accuracy of this release.
FOR
MORE INFORMATION: |
|
|
|
Jean-Marc Lacoste |
1-888-994-4465 |
President and Chief Executive Officer |
jm.lacoste@monarchmining.com |
|
|
Mathieu Séguin |
1-888-994-4465 |
Vice President, Corporate Development |
m.seguin@monarchmining.com |
|
|
www.monarchmining.com |
|
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