Monument Acquires Second Mill for Future Production Plant Upgrade
Vancouver, B.C. Monument Mining Limited (TSX-V:MMY and FSE: D7Q1) (“Monument” or the “Company”) announces that it has reached an agreement to acquire a 1.0 M tpa mill from Avocet Mining PLC (“Avocet”), its 19.4% shareholder, in readiness for an intended upgrade of its planned Stage I gold treatment plant construction program at its 100% owned Selinsing Gold Mine project (“Selinsing”) in Pahang State, Malaysia.
The Stage I 400,000 tpa gold treatment plant is designed to initially produce approximately 40,000 ounces of gold per annum with a crushing circuit installed suitable for a planned Stage II plant extension to increase production. In addition to the first 400,000 tpa mill purchased last year for the Stage I Selinsing CIL gold treatment plant, this second mill will be reserved for the Stage II future plant upgrade.
Monument is taking advantage of the immediate availability of the 1.0 M tpa mill from Avocet. The acquisition and relocation of the mill to the Selinsing site is readily and economically feasible since the twin of this mill has recently been installed in Avocet’s plant upgrade at the nearby Penjom Gold Mine in Pahang State, Malaysia, approximately 40 Kilometres away from Selinsing. The long waiting times for equipment delivery and constant price increases under the current industry climate makes this acquisition attractive.
The $3,250,000 consideration for the mill will be paid by issuance of 8,125,000 units of Monument’s equity at $0.40 per unit, on the same terms as the private placement announced on May 13, 2008, subject to necessary regulatory approvals. Each unit represents one share and one share purchase warrant exercisable for $0.50.
Monument has recently announced it will raise $28.0 million by way of private placement and $10.0 million by way of a Convertible Note in order to build its planned Stage I 400,000 tpa CIL gold treatment plant, develop the Selinsing open pit gold project, as well as acquire two new convertible RC/diamond drill rigs for exploration expansion at Buffalo Reef and elsewhere and eliminate the present $9.0 million debt.
Subject to closing the financing, the 400,000 tpa CIL gold treatment plant is expected to be in production in the first half year of 2009. The planned Stage II plant upgrade will not happen for approximately 6-12 months after the commissioning of the 400,000 tpa CIL gold treatment plant and will be subject to the future exploration success of Buffalo Reef, which at present does not have a NI-43-101 resource report issued. It is expected this report will be commissioned at the completion of the present drilling program projected later in 2008. The Buffalo Reef exploration and drilling program has presently completed approximately 6,500 metres of RC drilling out of a combined RC/Diamond drilling program totaling 12,400 metres.
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 transactionand 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.