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MONTRÉAL, Feb. 23, 2017 /CNW/ - Monarques Gold Corporation ("Monarques", the
"Corporation") (TSXV:MQR) (FRANKFURT: MR7) is pleased to announce that it has entered into an agreement with a syndicate
of underwriters led by Laurentian Bank Securities Inc. and including Canaccord Genuity Corp. (together the "Underwriters"),
under which the Underwriters have agreed to purchase, on a "bought deal" private placement basis, 4,000,000 units of the
Corporation (the "Units") at a price of $0.45 per Unit for gross proceeds of $1,800,000 and 5,000,000 flow-through common shares of the Corporation (the "Flow-Through Shares") at a price
of $0.66 per Flow-Through Share for gross proceeds of $3,300,000 for
aggregate gross proceeds of $5,100,000 (the "Offering"). Each Unit is comprised of one common share
of the Corporation ("Common Share") and one whole common share purchase warrant of the Corporation (each, a "Warrant"). Each
Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.60 per Common
Share, for a period of 36 months following the closing date of the Offering.
The Corporation has also granted the Underwriters an overallotment option to purchase up to 15% of the number of Units and
Flow-Through Shares sold pursuant to the Offering exercisable up to 48 hours prior to the closing of the Offering.
The closing of the Offering is expected to occur on or about March 7, 2017 and is subject to the
completion of formal documentation and receipt of regulatory approvals, including the approval of the TSX Venture Exchange.
The gross proceeds received by the Corporation from the sale of the Flow-Through Shares will be used to incur Canadian
Exploration Expenses that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) on the Corporation's properties, which expenses will be renounced to the subscribers with an
effective date no later than December 31, 2017, in the aggregate amount of not less than the total
amount of the gross proceeds raised from the issue of Flow-Through Shares.
The Corporation agrees and covenants that it will incur the full Canadian exploration expenses in the Province of Québec, and
which expenditures will qualify for the corresponding income tax credits and deductions under the laws of the Province of Québec
in respect of eligible exploration expenses incurred in the Province of Québec. The net proceeds from the sale of the Common
Shares will be used for general corporate and working capital purposes.
All securities issued under the Offering will be subject to a four month hold period from the date of issue in accordance with
applicable securities laws.
ABOUT MONARQUES GOLD CORPORATION
Monarques Gold is a growing junior gold company focused on becoming the leading explorer and developer of gold properties in
the Val-d'Or/Abitibi gold camp in Quebec, Canada. In addition
to its main asset, the Croinor Gold mine, which has great potential to become a producing mine, the Corporation currently has
approximately 200 km² of gold exploration properties along the Cadillac Break (see
map). Monarques Gold is well financed and has close to $9 million in credits from Quebec's Ministry of Energy and Natural Resources.
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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.
SOURCE Monarques Gold Corporation
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