MONARCH MINING CORPORATION (TSX: GBAR) (OTCQX: GBARF) is pleased to announce that it has closed its previously announced bought deal private placement for aggregate gross proceeds of C$6,655,600. The Offering was conducted pursuant to the terms and conditions of an underwriting agreement entered into among the Corporation, Sprott Capital Partners LP and Stifel GMP, as co-lead underwriters and joint bookrunners. The Offering includes the exercise by the Underwriters of their over-allotment option for additional gross proceeds of C$655,600. The Offering consisted of the issuance of 8,319,500 units of the Corporation at a price of C$0.80 per Unit.
Each Unit consists of one common share of the Corporation and one-half of one Common Share purchase warrant. Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of C$1.05 for a period of 24 months from the date of issuance thereof.
The net proceeds from the Offering will be used for exploration expenditures at the Corporation’s properties and for general and corporate working capital purposes.
As consideration for the services provided by the Underwriters in connection with the Offering, the Underwriters received: (i) a cash commission equal to 6% of the gross proceeds of the Offering; and (ii) compensation options equal to 6% of the number of securities sold under the Offering. Each Compensation Warrant is exercisable to acquire one Common Share of the Corporation at a price of $0.87 per Compensation Option Share until June 29, 2023.
All securities issued pursuant to this Offering are subject to a restricted period of four months and a day, ending on October 30, 2021, under applicable Canadian securities legislation. The Offering remains subject to the final approval of the Toronto Stock Exchange.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold to, or for the account or benefit of, persons in the United States or U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Monarch Mining Corporation is a fully integrated mining company that owns four advanced projects, including the fully permitted past-producing Beaufor Mine, which has produced more than 1 million ounces of gold over the last 30 years. Other advanced assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near Monarch’s wholly owned and fully permitted Beacon 750 tpd mill. Monarch owns 28,702 hectares (287 km2) of mining assets in the prolific Abitibi mining camp that host 588,482 ounces of combined measured and indicated gold resources and 329,393 ounces of combined inferred resources.
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We acknowledge the [financial] support of the Government of Canada.