The property, which is located 20km east of Val-d’Or, Quebec, covers an area of 4.05km² in Abitibi Greenstone Belt. Monarques and Eloro will form a JV for the management of the property, with Monarques acting as the project operator.
The deal provides for the corporation to buy a 50% undivided interest in the Simkar property, consisting of a contiguous group of two mining concessions and 11 mineral claims.
Monarques has paid a consideration of $750,000 in exploration work and a $120,000 private placement in Eloro’s share capital at a price of $0.015 per share, for a total of eight million Eloro shares, acquiring about 13.5 % ownership.
The agreement is subject to regulatory authorities approval, and is expected to close in the coming weeks.
The Simkar property comprises an Archean, high-grade, shear-zone associated, gold-bearing, fault-fill and extensional quartz vein system characteristic of the gold deposits in the Val-d’Or mining district.
