Probe Gold acquiring Croinor gold property from Monarch Mining

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Probe Gold Inc. [PRB-TSX; PROBF-OTCQB] has entered into a definitive agreement of purchase and sale with Monarch Mining Corp. [GBAR-TSX; GBARF-OTCQB], pursuant to which Probe has agreed to acquire a 100% interest in the Croinor gold property. The property acquisition extends the company’s land package immediately to the east of the company’s Novador project and increases Probe’s landholdings in Val d’Or to 600 km2.

Closing of the transaction is expected to close in the coming weeks and is subject to receipt of regulatory and other approvals.

David Palmer, president and CEO of Probe, stated: “The Croinor property is a highly strategic acquisition for a number of reasons: it ties into our current development model in Val d’Or; increases our current resource inventory by 228,000 ounces of high-grade gold; and also gives us an additional 152 km2 of highly prospective and underexplored ground for further expansion and discovery. Our goal is to begin work immediately, upon closing, to advance this project and bring it under the umbrella of our Novador development plans. We see the ability to increase our resource base, and ultimately our production plans, with this acquisition and add significant value to shareholders.”

The Croinor property is located 58 km east of the Novador project in Val d’Or, Quebec, and consists of one mining lease and 337 claims, over a 152-km2 area. The property hosts a current measured and indicated resource of 805,900 tonnes at 6.47 g/t for 187,900 ounces of gold and inferred mineral resource of 200,100 tonnes of 6.19 g/t for 39,800 ounces of gold. The property will be part of the Probe’s Val d’Or consolidated land package, which, after the acquisition of the property, will stand at 600 km2.

The property is transected by the Garden Island deformation corridor (GIDC) in a northwest-southeast direction, which is a major fault following the contact between the Assup and Garden Island domains. Probe is currently exploring the GIDC on its Novador project, as part of the company’s 2023 exploration initiative.

The Croinor gold system remains open for expansion and a large part of the property was never explored using modern techniques.

Probe Gold will acquire a 100% interest in the property for aggregate consideration of $4.5-million, payable at the closing of the acquisition in a combination of cash and common shares of the company, as follows: Probe will issue Monarch that number of common shares of the company that is equal to $2.5-million based on a 10-day volume-weighted average price (VWAP) of Probe’s common shares on the Toronto Stock Exchange; and Probe will pay Monarch $2-million in cash. In addition, Probe will assume any reclamation liabilities associated with the past-producing Croinor mine.

Probe Gold is committed to discovering and developing high-quality gold projects, including its key asset, the multimillion-ounce Novador gold project, Quebec. The company is well financed and controls a strategic land package of approximately 1,600 km2 of exploration ground within some of the most prolific gold belts in Quebec.

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