QUEBEC – Australian explorer Chalice Gold Mines
has agreed to an all-share deal to buy out Monarques Gold Corp
.’s 30% interest in the Chimo gold project. Chalice will issue 3.0 million common shares to Monarques as well as grant a 0.5% to 1.5% net smelter royalty. Chalice may buy back 0.5% of the NSR from Monarques at any time by paying $1.0 million.
Chalice exercised its option in March 2018 to earn a 70% interest in the property under the terms of a farm-in agreement that called for Chalice to invest $3.1 million in exploration expenditures, make option payments totaling $200,000 and grant Monarques a 1% NSR on certain claims.
"This is a good deal for both companies, as it allows Chalice to consolidate its position in its highly prospective East Cadillac gold project and Monarques to keep an interest in this mining play while continuing to focus on its core assets, namely the Wasamac gold project," said Jean-Marc Lacoste, president and CEO of Monarques.
More information from the Wasamac gold project will be posted at www.MonarquesGold.com.
Readers may also be interested in visiting www.ChaliceGold.com.