Monarch Gold Mining Company has agreed to terms for the sale of its Minjar project, located 500km north of Perth and southwest of Mount Magnet.
The successful bidder for the project was Aard Metals and Energy Limited, with the agreement involving a cash and equity arrangement worth $11m.
Monarch engaged Prime Corporate Finance to market the Minjar Gold Project in December 2007. Final bids for the sale were submitted by March 14, 2008, with the finalisation of the sale agreement to be completed by 11 April 2008.
Monarch Chairman Michael Kiernan said the Minjar assets were no longer a core part of the company’s strategic direction, with Monarch focusing its efforts in the region on its recently acquired Mount Magnet project.
The Minjar package includes gold resources of more than 400,000oz within a 1,722sqkm tenement package and a 600,000tpa gold processing facility.
Mr Kiernan said there had been a high level of interest in the Minjar asset, with 31 parties expressing interest in the project.
Aard Metals is an unlisted exploration public company scheduled to list on the ASX in mid-2008. It will take possession of the Minjar assets in June 2008.
Aard has developed a strategy to rapidly consolidate smaller gold mining operations, which are now becoming viable. Minjar reportedly represents the cornerstone for Aard's vision.
- 09 Apr 2008
MON Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
