CAMPBELL, CA, July 9, 2013 /PRNewswire/ – July 9th, 2013 / Monarchy Resources, Inc., (OTCBB: MONK.OB) today announced that the company has purchased an additional 17% of New World Metals S.A.P.I. de C.V., (NWM) increasing Monarchy’s ownership stake in NWM’s to 45%.
“Coming to terms for the purchase of these additional shares allows both organizations to accomplish its goals,” said Staehr. “The additional ownership for Monarchy provides us with a greater return on our total investment from future resource sales, and for NWM, the cash advancement of funds will allow NWM the necessary operating capital and equipment purchases to begin cash flowing from operations.”
A total of 17,000 Shares or 17% of NWM was acquired through exchange of both cash and shares.
NWM agreed to sell to Monarchy and Monarchy agreed to purchase from NWM, 17% of the outstanding shares (equivalent to 17% of the total common shares) of the Company in exchange for $750,000 plus 5,000,000 shares of common stock of the Buyer issued to the Seller at a deemed price of $1.00 per share for a total purchase value of $5,750,000.
It was expressly agreed that Monarchy shall be granted a pro-rated interest as to a total of 45% in the profits of the Company. Such profit shall be calculated and paid out to the Monarchy on a quarterly basis.
Steve adds, “New World Metals is a production stage company, and they have worked very hard in their first stages to chase and stockpile their resources. With production costs much lower then that of other parts of the world, the time could not be better to begin implementing the final stages of processing where (even at todays gold and silver prices), NWM’s low production costs will hold great leverage.”
About Monarchy Resources
Monarchy Resources (“Monarchy”) engages in a variety of investments in historically significant, mining claims and mining real estate world-wide with mineral reserves primarily consisting of precious metals. Monarchy Resources takes a minority, non-operated position in precious metal mining projects. We combine experienced management, low overhead and capital towards promising strategic acquisitions. We allow operators to remain focused on their operated interests and in return Monarchy receives revenue share of the profits from such participation. Monarchy’s non-operated position continues to gain momentum as Monarchy partners with more operators and land professionals.
About New World Metals
New World Metals Corporation (“NWM”) is a mineral development, ore processing and refining company focusing on expanding its production of gold and silver in Chihuahua, Mexico. NWM has two operational mines currently producing 200 tons per day. As of 2013 the company is in the process of acquiring an equal share percentage on a 250-ton per day processing plant. They will expand their mine production to 360 ton-per-day within two years.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including the Company’s beliefs about its business prospects and future results of operations. Some factors that could cause actual results to differ materially include economic and operational risks, changes in anticipated earnings, continuation of current contracts, and other factors detailed in the Company’s filings with the Securities and Exchange Commission, including its most recent Forms 10-K and 10-Q. The Company forecasts provided above are dynamic and therefore refer only to this release date. The Company does not undertake to update any forecasts that it may make available to the investing public.
SOURCE Monarchy Resources, Inc.