SPOKANE, Wash., May 12, 2004 (PRIMEZONE) -- Monarch Gold Exploration, Inc. (Pink Sheets:MGEX ) is pleased to announce that it has entered into a joint venture agreement on its Goldfield Project located in Esmeralda County, Nevada. The agreement was made with U.K.-based Coolcharm Ltd., an exploration mining company based in London.
Under the terms of the agreement Coolcharm made a cash payment to Monarch in the amount of $50,000 and is committed to the following exploration expenditure schedule on the property in order to earn a 60% interest in the project:
-- $250,000 of exploration expenditures in year one; -- $350,000 of exploration expenditures in year two; -- $400,000 of exploration expenditures in year three.
If Coolcharm fails to complete the above expenditures they will forfeit any and all interest they may have in the joint venture and the project.
Upon completion of these expenditures the two companies will continue to explore and develop the property, if they determine to do so, by each contributing their respective share of expenditures to the joint venture. In the event either party elects not to provide its share of joint venture expenditures, they will revert to either a 20% net profits interest royalty, or a 2.5% net smelter return royalty in the project.
Bob Jorgensen, President of Monarch Gold remarked that "We are extremely pleased with the terms of this deal because it means we are likely to achieve this year some of the drilling and other exploration work that needs to be done at Goldfield to begin validating some of our ideas about the potential there. This work will represent real on-the-ground progress for us."
Certain statements contained herein may contain forward-looking statements that involve risks and uncertainties. Therefore, actual results may differ materially from those projected or implied. As a result, these forward-looking statements represent the Company's best judgment as of the date of this news release.