- The Corporation has acquired a block of 6.5 million shares of
Unigold (TSXV: UGD), a gold exploration company, which operates in
the Dominican Republic.
- Unigold's main asset is the Neita concession, which hosts a
deposit of over 2 million ounces of gold (inferred resource of 39.5
million tonnes at 1.59 g/t Au).
- The other major shareholders of Unigold are Osisko Gold
Royalties Ltd. (14.7%) and Evanachan Limited (7.3%), a company
owned by Robert R. McEwen.
- As consideration, Monarch issued 3.25 million shares of its
share capital, which will be escrowed for 24 months.
MONTREAL, May 9, 2019 /CNW/ - MONARCH GOLD
CORPORATION ("Monarch" or the "Corporation") (TSX: MQR)
(OTCMKTS: MRQRF) (FRANKFURT: MR7) is pleased to announce that it
has acquired from an investor a block of 6.5 million shares (the
"Shares") of Unigold Inc. ("Unigold") (TSXV: UGD) at
an agreed price of $0.115 per Share
for a total amount evaluated at $747,500 payable by the issuance of
3.25 million shares of the Corporation at an agreed price of
$0.23 per common share of the
Corporation. The shares issued by Monarch will be escrowed for a
24-month period.
The transaction did not take place on a stock exchange or
market. Prior to the transaction, the Corporation did not own or
control any Unigold Share. Immediately after the transaction, the
Corporation owns or controls 6.5 million shares, which
represent 14.23% of the issued and outstanding shares of
Unigold.
The Dominican Republic is known
to be a mining-friendly jurisdiction. It hosts several mines,
including Pueblo Viejo, a Barrick-Newmont Goldcorp joint venture
with a resource of over 10 million ounces of gold and
production of almost 600,000 ounces of gold per year.
Over the past five years, Unigold has spent more than
$20 million on exploration, including more than
50,000 metres of drilling that identified an inferred resource
of over 2 million ounces of gold, as well as high-grade mineralized
zones within the largest zones of disseminated mineralization. The
NI 43-101 resource estimates prepared in 2013 and 2015 indicate
that given the known extent of mineralization on the property, as
demonstrated by the other exploration targets, the Neita concession
has the potential to host further deposits or lenses of gold and
multi-element (e.g., silver, copper) mineralization. There is a
high probability that the resource can be increased, both in terms
of quantity and quality (see 2013 NI 43-101 technical report and
2015 NI 43-101 technical report).
Neita – Inferred
Mineral Resource Estimate –
2013(1)/2015(2)
|
2013 Mineral Resource
Estimate
|
Deposit
|
Tonnes
(x 1,000)
|
Au
(g/t)
|
Au oz
(x 1,000)
|
Ratio de
décapage
|
Open
Pit
|
Oxide
(0.32 g/t
cutoff)
|
Extension
Main
Connector
|
-
2,448
1,108
|
-
0.92
1.12
|
-
72
40
|
-
1.3
1.3
|
|
Subtotal
|
|
3,556
|
0.98
|
112
|
1.3
|
|
Sulphide
(0.56 g/t
cutoff)
|
Extension
Main
Connector
|
24,223
5,003
980
|
1.59
1.16
1.08
|
1,241
186
34
|
7.6
1.3
1.3
|
|
Subtotal
|
|
30,206
|
1.50
|
1,461
|
6.4
|
Subtotal
|
|
|
33,762
|
1.45
|
1,573
|
5.8
|
Below
Pit
|
Sulphide
(1.25 g/t
cutoff)
|
Extension
Main
Connector
|
4,977
704
50
|
2.42
2.21
2.49
|
387
50
4
|
|
Subtotal
|
|
|
5,731
|
2.39
|
441
|
|
TOTAL 2013
Estimate
|
|
39,493
|
1.59
|
2,014
|
|
2015 Mineral Resource
Estimate
|
Underground
|
Sulphide
|
3.5 g/t
cutoff
|
5,274
|
5.27
|
894
|
|
(Source: (1) NI
43-101 Technical report mineral resource estimate for the
Candelones project, Neita concession, Dominican Republic, December
20, 2013, Micon International Limited; (2) NI 43-101 Technical
report mineral resource estimate for the Candelones extension
deposit, Candelones project, Neita concession, Dominican Republic,
March 30, 2015, Micon International Limited)
|
"This was an incredible opportunity for Monarch and a
transaction that we could not pass up," said Jean-Marc Lacoste, President and Chief Executive
Officer of Monarch. "Monarch has always been interested in
acquiring undervalued assets with a view to developing their full
value. With Unigold, we are acquiring a block of shares of a
company with a resource of more than 2 million ounces of gold,
at a fraction of the market price for such an asset, and with a
strong shareholder base. In addition, this property has excellent
high-grade exploration potential, as demonstrated by the 2015
resource estimate."
"This transaction adds another major asset to our project
portfolio, which includes our Wasamac flagship project, the Beaufor
mine, our Croinor Gold, MacKenzie Break and Swanson advanced projects, our Camflo and
Beacon mills, our shares in Chalice Gold Mines, Agnico Eagle Mines,
Osisko Gold Royalties and Yamana Gold, and the joint venture with
Probe Gold Mines. In the current gold market, we must be on the
lookout for opportunities like Unigold to enhance the quality of
our assets."
Other than as indicated in the present press release, Monarch
does not have any plans or future intentions regarding material
changes of Unigold, including the changes listed in Item 5 of Form
62-103F1, which is available on SEDAR under the profile of Unigold.
Under certain circumstances, including market conditions, Monarch
may increase or decrease its beneficial ownership or control over
Unigold's common shares or other securities through market
transactions, private agreements or new issuances.
A copy of the report filed under Regulation 62-104 as filed on
SEDAR can be obtained under the Unigold SEDAR profile or by
contacting Jean-Marc Lacoste at
1-888-994-4465.
The technical and scientific content of this press release has
been reviewed and approved by Marc-André Lavergne, P.Eng., the
Corporation's qualified person under National Instrument
43-101.
ABOUT MONARCH GOLD CORPORATION
Monarch Gold Corporation (TSX: MQR) is an emerging gold mining
company focused on pursuing growth through its large portfolio of
high-quality projects in the Abitibi mining camp in Quebec, Canada. The Corporation currently owns
close to 300 km² of gold properties (see map), including the
Wasamac deposit (measured and indicated resource of 2.6 million
ounces of gold), the Beaufor Mine, the Croinor Gold (see video),
McKenzie Break and Swanson
advanced projects and the Camflo and Beacon mills, as well as other
promising exploration projects. It also offers custom milling
services out of its 1,600 tonne-per-day Camflo mill.
Forward-Looking Statements
The forward-looking statements in this press release involve
known and unknown risks, uncertainties and other factors that may
cause Monarch's actual results, performance and achievements to be
materially different from the results, performance or achievements
expressed or implied therein. Neither TSX nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX accepts responsibility for the adequacy or accuracy of this
press release.
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SOURCE Monarch Gold Corporation