Monument Provides Update to Shareholders (cnw)
VANCOUVER, Jan. 17, 2013 /CNW/ - Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or the "Company") wishes to provide an update to shareholders on actions the Company is taking to advance its various projects and add value for all shareholders.
Mengapur Polymetallic Project
A key contributor to Monument's sustained value is its advanced-stage Mengapur Polymetallic Project. Today, Monument is pleased to announce that it has acquired the 30 percent of the Mengapur project that it did not already own, using cash on hand. Monument acquired this additional interest by purchasing, through a Malaysian subsidiary, 30 percent of the shares of Monument Mengapur Sdn. Bhd. from Malaco Mining Sdn. Bhd. in consideration for US$16 million in cash. As a result of this acquisition, Monument now holds, through its subsidiaries, 100% of the Mengapur Project.
As disclosed in a news release dated December 18, 2012, Monument is undertaking a phased development plan to advance the Mengapur project, following the same successful approach Monument used to bring its Selinsing gold mine into low-cost production. The phased Mengapur development plan includes, among other things, further drilling, construction of an onsite laboratory, and construction of a new concentrate plant as well as a parallel processing plant with 5000 tonnes per day capacity. Combined with its planned overhaul of an existing onsite concentrate plant, Monument believes that there is potential at Mengapur to process up to 6000 tonnes per day of material to produce copper and precious metal concentrate. A more detailed description of the Mengapur development plan is available in Monument's news release dated December 18, 2012.
On December 17, 2012 Monument announced a best-efforts private placement financing through a syndicate of agents led by Mackie Research Capital Corporation and including Salman Partners Inc. (the "December 17 financing"). This financing is intended to fund the Mengapur development plan that Monument believes will add significant value to the Company as it pursues its strategy of becoming a mid-tier gold and metals producer.
The December 17 financing is proposed to be completed on considerably better terms, and with less dilution to existing shareholders than the previously contemplated private placements with Tulum Corporation ("Tulum").
In addition, Monument believes the December 17 financing is more attractive than the proposed private placement with Tulum announced on October 11, 2012 as it will provide for broader participation by existing shareholders and potential new investors, as well as enhance Monument's profile in the capital markets and give Monument enhanced access to, and credibility with, institutional investors.
Further, Monument expects that the December 17 financing will pose limited execution or regulatory risk, whereas the earlier placement contemplated with Tulum announced in October 2011 was withdrawn in August 2012 in response to issues raised by the TSX Venture Exchange.
Accordingly, the Company has decided not to pursue the proposed $23.4 million private placement with Tulum, which was announced in October 2012. The terms of the December 17 financing were approved in principle by Monument's Board of Directors on October 9, 2012.
Cash flow to fund Selinsing expansion
In addition to pursuing the significant development potential of Mengapur, Monument continues to produce gold, at low cash costs, at its Selinsing project. As a result of the Company's decision to invest in expanded processing capacity at Selinsing, Monument reported record second quarter production on January 11, 2013. Operating cash flow from Selinsing's production is being reinvested in the continued expansion of gold resources at the project, including continued drilling and exploration programs, land acquisitions, plant upgrades and gold mine development. The Company announced further encouraging drill results at Selinsing in November 2012, and expects that Selinsing's production will continue to fund the expansion of the project.
Monument is committed to adding value for all shareholders as it pursues its production, expansion and development plans. The Board and management look forward to engaging directly with shareholders at an Annual General Meeting that will be held prior to March 31, 2013, in accordance with all applicable securities laws.
About Monument and its Mengapur Project
Monument Mining Limited (TSX-V:MMY, FSE:D7Q1) is an established Canadian gold producer that owns and operates the Selinsing Gold Mine in Malaysia, with production cash costs among the lowest in the world. Its experienced management team is committed to growth and is advancing several exploration and development projects in Malaysia, including the polymetalic Mengapur project. The Company employs 280 people in Malaysia and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities.
The Mengapur Polymetalic Cu-S-Au-Ag (Fe-Mo) skarn project is located 16 km north of Seri Jaya in Pahang State, Central Malaysia. It contains a historical Cu-S-Au-Ag resource defined by previous investigators in the 1980's. The A Zone area contains a historical skarn reserve (SP6 design pit) that is located at the southeastern contact zone with the Bukit Botak intrusion complex as presented in a 1990 historical study by Normet Engineering Pty. Ltd. ("Normet"). The historical resource and reserve estimates on the Mengapur Project use categories other than those set out in NI 43-101 and therefore should not be considered as Mineral Resources and Mineral Reserves as defined in the CIM guidelines. A summary of the historical Mengapur study by Normet may be found in a NI 43-101 compliant technical report prepared by Snowden Mining Industry Consultants, which was filed on Monument's SEDAR profile (www.sedar.com
) on February 29, 2012 and is available on the Monument website (www.monumentmining.com
Scientific and technical information concerning the Company's mineral projects contained or referred to in this news release has been reviewed and approved by Todd Johnson (MS, P.E.), Vice President of Exploration for Monument, who is a "Qualified Person" for the purposes of NI 43-101.
Robert F. Baldock, President and CEO
Monument Mining Limited
Suite 910- 688 West Hastings Street
Vancouver B.C. Canada V6B 1P1