• Gold Price USD $1,814.75
  • TSX.V: MMY
  • FSE: D7Q1
Contact Email Alerts

News Releases

Monument Announces $38.0 M Capital Raising to Commence Plant Construction and Expand Exploration Activities

May 13, 2008

Release #4 - 2008

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 debt.

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.

Mr. Baldock 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 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.


© 2021 Monument Mining Limited
All rights reserved.
Website by Adnet