Monarch Gold has acquired a 14.2% stake in Unigold, a Canadian-based junior natural resource company focused on the exploration and development of its gold projects in the Dominican Republic.

Monarch agreed to pay $0.115 for each of the 6.5 million shares of Unigold to an investor for a total of $747,500 through issuing 3.25 million shares at $0.23 per common share.

Unigold had invested more than $20m during the past five years on exploration, including more than 50,000m of drilling.

The company identified an inferred resource of more than two million ounces of gold, as well as high-grade mineralised zones within the largest zones of disseminated mineralisation.

“This property has excellent high-grade exploration potential, as demonstrated by the 2015 resource estimate.”

Unigold carries out its operations within the 75km-wide Cretaceous-age Tireo-formation volcano-sedimentary rocks, known for hosting major deposits.

The company’s main asset is the Neita concession, which hosts a deposit of more than two million ounces of gold.

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Osisko Gold Royalties and Evanachan, a company owned by Robert R. McEwen, are the other major shareholders of Unigold, respectively holding 14.7% and 7.3% stakes.

Monarch Gold president and CEO Marc Lacoste said: “Monarch has always been interested in acquiring undervalued assets with a view to developing their full value.

“With Unigold, we are acquiring a block of shares of a company with a resource of more than two million ounces of gold, at a fraction of the market price for such an asset, and with a strong shareholder base. In addition, this property has excellent high-grade exploration potential, as demonstrated by the 2015 resource estimate.”

Monarch already owns close to 300km² of gold properties in the Abitibi mining camp, including its Wasamac deposit, which has a measured and indicated resource of 2.6 million ounces of gold;  the Beaufor mine; the Croinor Gold, McKenzie Break and Swanson advanced projects; the Camflo and Beacon mills, as well as five exploration projects.