MONARCH GOLD CORPORATION (TSX: MQR) is pleased to announce that it has entered into an agreement pursuant to which Stifel GMP and Sprott Capital Partners LP as co-lead underwriters and joint bookrunners have agreed to purchase, on a “bought deal” private placement basis: (i) 4,870,000 flow-through units of the Corporation at a price of C$0.72 per Quebec FT Unit, and (ii) 6,150,000 flow-through units of the Corporation at a price of C$0.57 per Unit, for aggregate gross proceeds of C$7,011,900.
Each Quebec FT Unit shall consist of one common share of the Corporation and one-half of one common share purchase warrant each of which will qualify as a “flow-through share” (within the meaning of subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Québec)). Each FT Unit will consist of one common share of the Corporation and one-half of one Warrant each of which will qualify as a “flow-through share” (within the meaning of subsection 66(15) of the Income Tax Act (Canada). Each Warrant will entitle the holder thereof to purchase one common share of the Corporation at an exercise price of C$0.60 for a period of 24 months following the closing of the Offering.
The Underwriters have also been granted an option exercisable, in whole or in part, up to 48 hours prior to the Closing Date (as defined below), to increase the size of the Offering by up to approximately C$3 million, in any combination of Quebec FT Units at the Quebec FT Offering Price and/or FT Units at the FT Offering Price.
The gross proceeds from the sale of the Quebec FT Units and FT Units will be used by the Corporation to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) related to the Corporation’s Wasamac and McKenzie Break projects in Québec. The Qualifying Expenditures will be renounced in favour of the subscribers with an effective date no later than December 31, 2020.
The Offering is scheduled to close on or about September 17, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the conditional approval of the Toronto Stock Exchange.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Monarch Gold Corporation
Monarch Gold Corporation is an emerging gold mining company 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.
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We acknowledge the [financial] support of the Government of Canada.