Toronto, Ontario--(Newsfile Corp. - July 19, 2017) - Monarca Minerals Inc. (TSXV: MMN) ("Monarca" or the "Company") is pleased to announce that it has completed the second tranche of its previous announced (Press Release May 10, 2017) non-brokered private placement financing (the "Financing").
Under the second tranche of the Financing, Monarca issued 3,340,000 units (the "Units") at a price of $0.13 per Unit for gross proceeds of $434,200, making the total number of Units issued under the Financing 16,572,182 and the aggregate gross proceeds of the Financing $2,154,383. Each Unit was comprised of one common share of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at a price of $0.18 per share for a period of 36 months from the date of issuance.
The Units issued under the second tranche of the Financing are subject to a four-month hold period expiring on November 20, 2017. In connection with the second tranche of the Financing, the Company paid cash finder's fees of $14,245 and issued 109,577 finder warrants. Each finder warrant is exercisable for one Common Share at a price of $0.13 per share for a period of 36 months.
In connection with the second tranche of the Financing, Messrs. Frank Hogel and Allan Folk, each a directors of the Company (collectively "Insiders"), have acquired beneficial control over 440,000 Units in the aggregate. This issuance of Common Shares and Warrants to Insiders is considered a "related party transaction" as such term is defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that participation in the Financing by Insiders does not exceed 25% of the fair market value of the Company's market capitalization.
About Monarca Minerals Inc.
Monarca is a Canadian company focusing on the exploration and development of silver projects along a highly productive mineralized belt in Mexico. The Company has a portfolio of silver projects including a mineral resource of 28.7 million ounces of silver (19.8 million tonnes at 45.0 g/t Ag) at its Tejamen deposit.
