Monarch Gold Mining Company has annouced the sale sale of its Minjar project, located 500km north of Perth and south-west 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 $11 million.
In December 2007, Monarch engaged Prime Corporate Finance to market the Minjar Gold Project. Final bids for the sale were submitted by 14 March 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 focussing its efforts in the region on its recently acquired Mount Magnet.
The Minjar package includes gold resources of more than 400,000oz within a 1,722 sq km 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.
The offer includes:
- $1m cash upon signing as a non-refundable deposit,
- $4m cash by 30 June 2008,
- $2.5m cash by 31 December 2008 and
- $3.5m of equity by 31 December 2008.
Aard has the option to nominate another approved entity to make the acquisition.
The management team behind Aard have many years mining, exploration and project development experience, including at Kambalda, Norseman, Kalgoorlie, Southern Cross and successful project acquisitions, like Central Norseman Gold Corporation from Croesus Mining NL.
Aard has developed a strategy to rapidly consolidate smaller gold mining operations which are now becoming viable.
Minjar represents the cornerstone for Aard's vision.
