21 December
2009
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NEWS RELEASE
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Release # 11 - 2009
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Monument to Raise $12.0
M in Convertible Debenture and Forward Gold Sale
Vancouver,
B.C. Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or the "Company") announces that
it has signed Term Sheets with Peter Beck Performance Fonds
GbR (the "Lender"), a German based company, to raise up
to $12.0 million new capital comprised of a convertible note up to $7
million (the "Convertible
Note") and a forward sale of gold up to $5 million
(the "Forward Sale").
The
Convertible Note of up to $7 million has a term of five years and a day from the date of the issuance and must be repaid by the
Company at the end of the term in cash or gold at the option of the
Lender at 121.6% of the principal amount. The Lender may, at any time,
convert the Convertible Note into units at a price of $0.40 per unit with
each unit comprising one common share of the Company and one common share
purchase warrant. Each whole share purchase warrant is exercisable at
$0.50 per share, expiring five years from the date of issuance of the
Convertible Note. As an inducement to enter into the subscription agreement
for the Convertible Note, the Company will offer to sell the Lender 5,000 ounces of
gold at a price of $1,000 per ounce and 2,500 ounces of
gold at a price of $1,250 per ounce, which offer the Lender may ac cept at any time during the term of the Convertible
Note.
The
Term Sheet for the Forward Sale provides for the advance of $5 million to
Monument. Repayment of the advance will be made in gold. The
Forward Sale has a term of five years and a day with the Lender having
the right to call for repayment after 3 years under certain conditions. Warrants
for the purchase of 5 million common shares with the same terms as
described in connection with the Convertible Note above will be issued to
the Lender upon closing the transaction. The warrants must be either
exercised or otherwise expire on a pro-rata basis upon gold delivery.
The
Company's obligations under the Convertible Note and the Forward Sale
will be secured by a charge over a designated gold metal account of the
Company. The Company will be required to deposit at least 365 ounces of gold
per month into such metal account to a maximum of 12,000 ounces
commencing on the earlier of April 1, 2010 and commencement of
post-commissioning of the CIL plant.
A
10% finder's fee (the "Finder's
Fee") will
be payable in cash to Procter Advisers Ltd. of Switzerland as the lead agent
for the transaction.
The
Convertible Note, the Forward Sale and the payment of the Finder's Fee
are all subject to the approval of the TSX Venture Exchange.
The
new funding is in lieu of the $10.0 million dollars credit facility which
was not completed due to the global credit melt
down in late 2008 and early 2009. The funds are to be used for the
following purposes: the continuing exploration programs that will be
carried out by the Company's drill team using its own equipment; closing
the previously announced acquisition of a significant prospective
exploration property adjacent to the Selinsing
gold project where the Company expects to commission the CIL plant
shortly; and for the phase III gold treatment plant extension with a
second mill. With the additional funding, the Company expects to be
able to increase gold resources and enhance gold production through
increased plant through put.
Robert
Baldock, President and CEO of Monument Mining
states, "We are very pleased to make this announcement on the cusp
of completing the CIL plant early next year. The combination of gold
production and this new capital will place the Company into a comfortable
position to carry out these programs and conserve cash for debt repayment
and accumulate cash for other opportunities should they
arise".
The
Selinsing gold project was acquired by the
Company in June 2007. Since then the Company has been developing the open
pit gold mine together with a new 1,200 tpd
gold treatment plant in two construction phases. Phase I
gravity circuit of the plant is now commissioned and is producing limited
gold in parallel with the ongoing Phase II construction of the CIL
circuit. The Selinsing gold project currently
has a work force of over 120 trained employees and mine contractors on
site.
Robert F. Baldock, President and CEO
Monument Mining Limited
Suite 490- 688 West Hastings Street
Vancouver
B.C. Canada V6B 1P1
For further information contact:
North
America:
Europe:
Richard
Cushing, Investor
Relations
Wolfgang Seybold,
President, 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: http://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.
Forward-Looking Statement
This press release contains forward-looking statements about
Monument Mining Limited ("Monument"), its business and future
plans, including the contemplated phase I and phase II development plans
resulting in the commencement of mining and gold production, and in
respect of the dates and amounts projected for these two phases resulting
in the plant construction, gold production, gold sales and costs of the Selinsing Project. Forward-looking statements
are statements that are not historical facts and include the timing of
the proposed programs and events. The forward-looking statements in
this press release are subject to various risks, uncertainties and other
factors that could cause actual results or achievements to different
materially from those expressed or implied by the forward-looking
statements. These risks and certain other factors include, without
limitation, uncertainty to the actua l cost of
the gravity circuit and the estimated cash flows which may be generated
from the gravity circuit therefore committed forward gold sales cannot be
fulfilled, the risk that the Selinsing Project
will not be completed successfully or in a timely manner, the financing
risk that an expected funding could not be delivered by the
debtor, general economic factors and other factors that may be
beyond the control of Monument. Forward-looking statements are based
upon the beliefs, opinions and expectations of the management of Monument
at the time they are made and Monument does not assume any obligation to
update its forward-looking statements if those beliefs, opinions,
expectations or circumstances should change.
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