Announces $38.0 M Capital Raising to Commence Plant Construction and
Expand Exploration Activities
Vancouver, B.C. Monument Mining Limited (TSX-V:MMY and FSE:D7Q1) ("Monument" or the
"Company") is pleased to announce that it will proceed with a
private placement to raise aggregate $38.0 million dollars, subject to
shareholder and TSX-Venture Exchange's approval, to be fully funded to
complete construction of its 100% owned Malaysian Gold Mine Project,
advance exploration programs and discharge an existing $9.0 million
The Company has arranged to raise $28.0 million dollars of equity,
through a non-brokered private placement at a price of $0.40 per unit
(plus an allowance for oversubscription for an additional $3.2 million).
Each unit consists one share and one share purchase warrant of the
Issuer. Each share purchase warrant entitles the holder to acquire one
share of the Issuer at $0.50 per share. This is an arm's length
financing and 10% of total gross proceeds will be paid as commission to
the Agent for this transaction.
Concurrently with the equity financing Monument proposes to secure
a convertible credit facility for up to $10.0 million with a three year
term and interest at 3%. Monument would draw down not less than
$6.0 million by December 31, 2008 as needed to fund its development
work. The interest for the first year would be payable in shares or
cash at the discretion of the Company and in cash thereafter.
The credit facility will be convertible into units being one share
and one half warrant, the warrant being exercisable at $0.75 if converted
in the first two years of the facility and $0.83 if converted in the
third year of the facility. The conversion share price on the
facility is to be $0.40 per unit in respect to funds drawn down by
December 31, 2008.
The equity financing will require shareholder consent as it will
create a new control position. Monument presently has two shareholders holding more
than 50% of the present outstanding shares and they have indicated they
will consent to the equity financing and the credit facility.
The private placement
and the Convertible credit facility will close on or before 30 June 2008,
or at such prior time at the Issuer's discretion, for the Company to meet
all of its obligations. All securities issued under the private
placement and credit facility will be subject to a four month holding
period from the date of closing.
With this financing
the Company will be fully funded to production and expects to be
producing gold in the first half of 2009. The funds will be used to
construct a 1200 tpd CIL treatment plant with a gold production capacity
of up to 40,000 ounces per year, commence development of the open cut
gold project, acquire two new convertible reverse circulation/diamond
drill rigs in order to continue and expand its exploration program on
Buffalo Reef and elsewhere in addition to its present exploration
drilling capability. The funds will also be used for other general
working capital purposes.
Mr. Baldock, President
and CEO of the Company, said: "The completion of this financing will
be a milestone for the Company to move to the construction stage. The
construction period of the treatment plant facility under current market
conditions is expected to be completed within a year of commencement and
a positive cash flow will be generated from commercial gold production
thereafter, with no further funding requirement expected from the capital
markets in the foreseeable future. Such cash flow is expected
to provide adequate funding for an aggressive but focussed exploration
program on the Company land inventory and elsewhere and to retire its
Convertible Note obligations. The Company believes that the
exploration potential for the region is significant, based on the data
base of preliminary exploration results it has acquired and the land
inventory package now held or being acquired adjacent and nearby to its
presently planned production facility.
further comments: "With adequate financing in place, the Company
will expand its exploration capability within Malaysia, commencing with
the placement of an order for two new drill platforms. These mobile
tracked platforms complete with all equipment and spares including
compressors will be convertible in the field from reverse circulation to
diamond drilling to produce HQ drill core. Each platform will be
fully equipped and able to operate independently of each other as
complete stand alone units. At the same time the Company will
commence a recruitment and training program to expand its present staff
of two drilling teams to provide more flexibility to its exploration operations".
Robert F. Baldock, President and CEO
Monument Mining Limited
Park Place, Suite 500, 666 Burrard Street
Vancouver B.C. Canada V6C 3P6
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
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.