O3 Mining Inc. is pleased to announce that it has completed the sale of its Louvem Property to Eldorado Gold (Québec) Inc. O3 Mining has agreed to sell to Eldorado Québec a 100% interest in its Louvem Property located in Val-d'Or, Québec, Canada, in exchange for cash consideration of C$80,000 and the retention by O3 Mining of a 0.5% Net Smelter Return ("NSR") royalty payable to the Corporation on all metal production from the claims constituting the Louvem Property ("Louvem NSR").

In connection with the Agreement, O3 Mining granted to Eldorado Québec the right to repurchase 50% of the Louvem NSR (equal to a 0.25% NSR interest) from O3 Mining at any time following the closing of the Agreement for an immediate payment of C$250,000, to be paid in a lump sum.

The Corporation originally acquired the Louvem Property from Monarch Gold Corporation ("Monarch") pursuant to an asset purchase agreement dated March 16, 2020. The Corporation acquired a 50% interest in the Louvem Property in exchange for the issuance of 4,546 common shares of the Corporation, subject to a 1% NSR royalty granted to Monarch with a 0.5% NSR royalty buy-back for C$300,000. Eldorado Québec is assuming the obligation of such royalty in favour of Monarch. The Corporation acquired the remaining 50% interest for cash consideration of C$10,000. For additional information regarding the acquisition of the Louvem Property by the Corporation, see the press release "O3 Mining Acquires Interests in the Regcourt and Louvem Properties from Monarch Gold", dated March 17, 2020.

Source:prnewswire.com