Moneta Completes Acquisition of Garrison Project
"Finalizing the acquisition of the Golden Bear assets with overwhelming support from our shareholders has transformed Moneta into one of the largest gold development companies in North America with a significant resource and land holding in Canada's most prolific gold mining camp," Gary O'Connor, CEO of Moneta, said.
"The Golden Bear assets, including the Garrison Gold deposits, occur adjacent to our flagship Golden Highway project and provide significant synergies and multiple options for the development of our gold resources. Moneta now holds 3,967,000 ounces of indicated gold resources and 4,399,000 ounces of inferred gold resources including both high-grade bulk tonnage underground deposits and near surface open pit resources. We are pleased to have a highly successful project development company as a partner. With the closing of the recent $22.6M financing, Moneta is well funded to test the expansion potential of the integrated project. With the completion of the current 70,000 m drill program, we plan to update the resource estimate later this year followed by an updated and expanded preliminary economic assessment study (PEA) on the combined projects."
Moneta Porcupine Mines Inc. has completed the acquisition of all the issued and outstanding shares of Northern Gold Mining Inc., a wholly-owned subsidiary of O3 Mining Inc., which owns 100% of the Golden Bear assets, including the Garrison Gold project located adjacent to and contiguous with Moneta's Golden Highway project in the Timmins Gold Camp as previously announced on January 14, 2021 (Press release ME-PR 01-2021) (the "Transaction").
Under the terms of the Transaction, O3 Mining was issued approximately 150 million common shares of Moneta and currently owns approximately 27% of the outstanding Moneta shares. The shares are subject to a hold period ending December 31, 2022.
José Vizquerra, President and CEO of O3 Mining, commented, "O3 Mining is pleased to unlock value for our shareholders through our investment in, and support of, Moneta, and the future development of a large and long-life gold project in Timmins, Ontario - one of Canada's most productive gold camps. The consolidation of these two historically fractioned mining camps will allow for a more systematic exploration strategy going forward and will unlock value for our shareholders and Moneta shareholders alike as the project develops. We look forward to partnering with Moneta's management team, through our board representation, and being part of Moneta's growth story in the Timmins Mining Camp, in our role as a significant shareholder."
Corporate Update
Concurrent with the closing of the Transaction, the Board of Directors of Moneta will now be represented by Mr. Mark NJ Ashcroft, Mr. Rodney Cooper, Mr. Alex Henry, Mr. Gary O'Connor, Mr. Ian C Peres, and Mr. Josef Vejvoda, to be joined by O3 Mining nominees, Mr. José Vizquerra and Mr. Blair Zaritsky. Director biographies can be found at www.monetaporcupine.com and www.O3mining.com.
The Board of Directors at Moneta wishes to thank retiring Moneta Board of Director members, Mr. Mark Wayne and Dr. Kevin Heather for their numerous contributions to the success of the Company. Mr. Alex Henry, Chairman of Moneta commented, "We are very grateful to have had Mark and Kevin serve on our board over the past several years. Their dedication and knowledge added significantly to Moneta's growth." Mr. Gary O'Connor, CEO added, "On behalf of our entire board, we are very grateful to Mark and Kevin for their vast knowledge and insight into the development of large gold projects and their efforts to help create one of the largest gold projects in North America today."
Moneta also intends to consolidate its share capital on a 6 for 1 basis (the "Consolidation"), subject to the receipt of all necessary approvals, at its next annual general meeting "AGM". The Consolidation will require approval by not less than two-thirds (66 2/3%) of the votes cast by the Moneta shareholders present in person, or represented by proxy, at Moneta's next AGM.
The Transaction was approved by written consent by a majority of holders comprised of more than 51.6% of Moneta shares on February 11, 2021 (see press release ME-PR 05-2021). In connection with the Transaction, the Board of Directors received a Fairness Opinion from Maxit Capital LP stating that, subject to the assumptions, limitations, and qualifications set out therein, the consideration to be paid by Moneta pursuant to the purchase agreement with O3 Mining is fair, from a financial point of view, to Moneta. As required under securities law, Moneta will file a Form 51-102F4 Business Acquisition Report ("BAR") within 75 days of the Transaction closing. The Company satisfied the escrow release conditions under the previously announced $3 million subscription receipt financing concurrently with the closing of the Transaction (see press release ME-PR 04-2021 dated February 04, 2021). As a result, the subscription receipts converted, for no further consideration, into 9,375,000 Moneta shares on closing.
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