December 24, 2008
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NEWS RELEASE
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Release # 17 - 2008
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Monument
Amends Selinsing Gold Project Construction Plan
Due to Receipt of Cancellation of $10.0 M Credit Facility from Lenders
Vancouver, B.C. Monument Mining Limited (TSX-V: MMY and FSE: D7Q1)
("Monument" or the "Company") announces that the
Company is presently reviewing an Amended Construction Plan for its 1200 tpd gold treatment plant at the Selinsing
property in Malaysia without requiring further financing. The
changes to the construction plan are due to receipt of cancellation of a
previously announced $10.0 million credit facility.
On July 22, 2008, the Company announced that it closed a private
placement of $28.1 M and had entered into a Convertible Debenture credit
facility of $10.0 M with Quasiinfinity Limited and Madrague Equities
Corp. (collectively referred to as the "Lenders") for an
aggregate $38.1 M. Upon the drawdown of the credit facility, the
Company would be fully funded to complete construction of its 100% owned
Malaysian gold mine project located in Pahang State, Malaysia.
The Company served a Drawdown Notice (the "Notice") to
the Lenders after complying with all of the terms of the Convertible
Debenture. The Notice required the Lenders to provide the $10.0 M
on or by the 12 December 2008. Monument has received a letter
from the Lenders advising that due to market conditions and the global
credit melt down the Lenders would be unable to provide the funding on
the agreed terms at this time.
The Company has been proactively considering its options in this
market and is well advanced with detailed plans to proceed with the
development of its fully owned Selinsing Gold Project in the event
of no further financing being available. The proposed Amended
Construction Plan has no major deviation from the original construction
plan; however it breaks the construction of the 1200 tpd Gold Treatment
Plant into two stages: A gravity circuit and the carbon in leach
("CIL") circuit. The gravity circuit, estimated to cost
approximately $10.2 M, will be constructed and commissioned to full
operation ahead of proceeding to complete and commission the CIL circuit.
With current cash balance of $12.6 M the Company expects to complete the
gravity circuit and use cash flow generated from the gravity circuit to
fund the construction of the balance of the CIL circuit. The total cost
for the entire 1200 tpd CIL treatment plant remains virtually intact.
Mr. Baldock, President and CEO of the Company, said: "The
primary advantage to the Company adopting this approach is to avoid
significant dilution to existing shareholders' value under the current
market where the Company's market cap is undervalued. It will also
ensure the Company has no debt".
Mr. Baldock continued: "The Company is intensively reviewing
the new approach and the changed construction
plan so as to build the second stage of the plant with cash
flow from the first stage, focusing all its energies on fast tracking the
construction and commissioning of the full plant once the gravity circuit
is commissioned and working to full capacity. Upon completion of
the full plant Monument will return its attention to its exploration and
drilling programs".
It is expected that another announcement will be made very early
in the new year advising progress on the new approach, construction
schedules, costs and the full affect of the change on the project, which
is expected to be minimal overall.
In the meantime, construction work on key portions of the
infrastructure, haul roads, crossings and earthworks have been largely
completed, and building of the hydro power substation for connection to
the grid and other similar work is continuing. Purchase orders for
key items of the gravity circuit such as the crushing circuit, ball mill
installation, and longer lead items have either been issued or are in the
process of issuing.
Robert F. Baldock, President and CEO
Monument
Mining Limited
Park
Place, Suite 710, 666 Burrard Street
Vancouver B.C. Canada V6C 3P6
For further information contact:
North
America:
Europe:
Richard Cushing, Investor
Relations
Wolfgang Seybold,
President and CEO, Axino.AG
Office: 604.638.1661
Office:
+49.711.25.35.92.40
Cell:
604.889.6563
Fax:
+49.711.25.35.92.55
E-mail: info@monumentmining.com
E-mail:
wolfgang.seybold@axino.de
Website: www.monumentmining.com
Website:
www.axino.de
The TSX
Venture Exchange has in no way passed upon the merits of the proposed
transaction
and has
neither approved nor disapproved the contents of this news release.
Not for distribution to U.S. news wire services or dissemination
in the United States. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of the information contained
herein. Certain disclosures in this release, including management's
assessment of the Company's plans and projects, constitute
forward-looking statements that are subject to numerous risks,
uncertainties and other factors relating to the Company's operation
as a mineral exploration company that may cause future results to differ
materially from those expressed or implied in such.
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