Monument Amends Selinsing Gold Project Construction Plan Due to Receipt of Cancellation of $10.0 M Credit Facility from Lenders
Release #17 - 2008
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:
Richard Cushing, Investor Relations
Wolfgang Seybold, President and CEO, Axino.AG
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.