MONARCH MINING CORPORATION (TSX: GBAR) (OTCQB: GBARF) has entered into a royalty buyback option agreement with Gold Royalty Corp. regarding the McKenzie Break, Swanson and Croinor properties.

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 for the consideration provided below. In order to exercise the Buyback Right, Monarch, together with the eventual purchaser or purchasers 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:

1. $2 million in cash for each Property for which the Buyback Right is exercised; or
2. $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:

1. $2.5 million in cash for each Property for which the Buyback Right is exercised; or
2. $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 Monarch

Monarch Mining Corporation 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.