Monarch Mining Corporation Announces C$5 Million Bought Deal Private Placement Of Flow-Through Shares
Montral, Qubec, Canada, February 9, 2021 – MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) is pleased to announce that it has entered into an agreement pursuant to which Sprott Capital Partners LP and Stifel GMP as co-lead underwriters and joint bookrunners (collectively, the “Underwriters”) have agreed to purchase, on a “bought deal” private placement basis (i) 857,143 flow-through common shares of the Corporation (the “Quebec FT Shares”) at a price of C$1.75 per Quebec FT Share, and (ii) 2,536,232 flow-through common shares of the Corporation (the “FT Shares”) at a price of C$1.38 per FT Share, for aggregate gross proceeds of C$5 million (the “Offering”).
Each Quebec FT Share 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 (Qubec)) and each FT Share will qualify as a “flow-through share” (within the meaning of subsection 66(15) of the Income Tax Act (Canada).
The Underwriters have also been granted an option (the “Underwriters' 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 15% of the total number of Quebec FT Shares and FT Shares sold under the Offering, in any combination of Quebec FT Shares at the Quebec FT Offering Price and/or FT Shares at the FT Offering Price, as applicable.
The gross proceeds from the sale of the Quebec FT Shares and the FT Shares 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) (the “Qualifying Expenditures”) related to the Corporation’s projects in Qubec. The Qualifying Expenditures will be renounced in favour of the subscribers with an effective date no later than December 31, 2021.
The Offering is scheduled to close on or about March 2, 2021 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.