Monarch raises funds for Venezuelan gold prospects

United Kingdom-based Monarch Resources has agreed to sell 7.4 million ordinary (common) shares at $4.50 per share to raise roughly $33.4 million.

Proceeds from the offering (which is not available to investors in the U.S.) will fund exploration efforts in Venezuela.

Monarch, a London Stock Exchange-listed company that has been conditionally approved for listing on the Toronto Stock Exchange, has been active in Venezuela since 1986. It is developing the US$25-million Camorra mine, the first privately owned, underground gold producer in that country for several decades. It is slated to produce 81,000 oz. gold per year at a cash cost of US$125 per oz.

Monarch spent US$5.7 million on exploration in 1992 and 1993, half of which was applied to concessions near La Camorra.