Bolivar Goldfields (BVG-T) is dropping its lawsuit against Monarch Resources (MRE-T) and buying Monarch’s majority interest in the Revemin processing plant, situated 16 km from Bolivar’s Tomi gold concession in Venezuela.
Bolivar will pay US$8.25 million, assume a maximum of US$700,000 in liabilities and issue 1 million shares to Monarch for its interest.
The agreement is subject to Bolivar receiving financing and obtaining the agreement of Venezolana de Guayana, Monarch’s partner in Revemin. Under the original deal, reached last September, Monarch would have received US$13.3 million and 1 million Bolivar shares for all of its Venezuelan assets, which include the plant, La Camorra gold mine and several exploration properties.
After Monarch backed out of that deal in October, Bolivar launched a lawsuit claiming Monarch’s termination of the agreement was improper. The new deal is expected to close by May 31.
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