Chalice to issue 3 million shares and grant
Monarques a total 0.5-2.5% NSR royalty
MONTREAL, Sept. 10, 2018 /CNW/ - MONARQUES GOLD
CORPORATION ("Monarques" or the "Corporation") (TSXV:MQR)
(OTCMKTS:MRQRF) (FRANKFURT:MR7) is pleased to announce that it
has sold its 30% interest in the Chimo property to Chalice Gold
Mines Limited ("Chalice") (ASX:CHN; TSX:CXN) in consideration of 3
million fully-paid ordinary Chalice shares and a net smelter return
("NSR") royalty of 0.5-1.5% (0.5% on the claims with pre-existing
royalties and 1.5% on all other claims). Chalice is entitled to buy
back 0.5% of the NSR royalty from Monarques for $1.0 million at any time.
Previously, Chalice exercised an option in March 2018 to earn a 70% interest in the property
under an option and farm-in agreement that called for it to incur
$3.1 million in exploration
expenditures, make option payments totalling $200,000 and grant Monarques a 1% NSR royalty on
certain claims.
"This is a good deal for both companies, as it allows Chalice to
consolidate its position in its highly prospective East Cadillac
Gold Project and Monarques to keep an interest in this mining play
while continuing to focus on its core assets, namely the Wasamac
gold project," said Jean-Marc
Lacoste, President and Chief Executive Officer of
Monarques.
ABOUT MONARQUES GOLD CORPORATION
Monarques Gold Corporation (TSXV: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 five
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 Monarques' actual results, performance and achievements to be
materially different from the results, performance or achievements
expressed or implied therein. Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
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SOURCE Monarques Gold Corporation