SPOKANE, Wash., March 14, 2005 (PRIMEZONE) -- Monarch Gulf Exploration (Pink Sheets:MGXX) announced today that they have entered into a non-binding letter of intent with Coolcharm Gold Mining Company Ltd. Located in London U.K. Monarch will receive cash and stock as consideration for the sales of all of the company mining interests in Nevada and will retain a royalty interest in each of the three claim groups to be sold.
"The new business plan of the company doesn't really lend itself to pursuing the development of our mining properties at this time," company president R.E. Bob Jorgensen stated. "This transaction will complete our transition to a pure oil and gas play in the marketplace, which is important to our current and future shareholders as we go forward. Monarch is focused on building oil and gas reserves primarily in the Gulf Coast area of Texas and Louisiana. We have had significant interest from the mining community concerning our claim groups in Nevada."
Since the company already had a joint venture agreement in place with Coolcharm group, an outright sale of entire portfolio to them made sense to both parties. At this time the companies are working towards a definitive agreement. This transaction will be subject to approval by Coolcharm and the board of directors of Monarch. It is contemplated that the closing of the Definitive Agreement would occur on or before March 31, 2005.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward looking statements that involve risk and uncertainties. The company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward looking statements. Those factors include but are not limited to the ability of the company to verify the reserve value of the oil and gas well interests, the cyclical nature of the industry and the economy in general.