MONTREAL, April 03, 2024 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) announces the closing of its previously-announced transactions with Probe Gold Inc. (“Probe”) for the sale of the Beaufor Property and the McKenzie Break Property to Probe, and with Bullrun Capital Inc. (“Bullrun”) for the sale of the Swanson Property to Bullrun.
Transactions details
Probe acquired a 100% interest in the McKenzie Break and Beaufor properties, for aggregate consideration of $8.5 million, paid to Monarch as follows: (i) Probe issued 3,580,902 common shares (the “Consideration Shares”) for a total value of $5.4 million based on the 10-day volume weighted average price (VWAP) of Probe’s common shares on the Toronto Stock Exchange for the period ending on April 1, 2024, with the Consideration Shares being issued at a deemed price of $1.508 per Consideration Share; and (ii) a cash payment of $3.1 million. The Consideration Shares have a hold period of four months and one day from closing date of the acquisition.
Bullrun acquired a 100% interest in the Swanson property, for an aggregate cash consideration of $350,000.
The transactions are the culmination of the Corporation’s previously announced court-approved sale and investment solicitation process (“SISP”) carried out by PricewaterhouseCoopers Inc. in its capacity as Monitor in the Corporation’s ongoing proceedings pursuant to the Companies’ Creditors Arrangement Act (the “CCAA Proceedings”).
Neither Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the manuals of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Further information regarding the Corporation is available in the SEDAR+ database (www.sedarplus.ca) and on the Corporation’s website at: www.monarchmining.com.
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