Release #8 - 2008
Vancouver, B.C. Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) (“Monument” or the “Company”) is pleased to announce that it closed its previously announced private placement and credit facility agreement and has raised an aggregate of $38.1 million dollars. Monument is now fully funded to complete construction of its 100% owned Malaysian Gold Mine Project located in Pahang State, Malaysia.
Mr. Robert Baldock, President and CEO of the Company, stated that “The completion of this financing is a significant milestone for the Company. The Company is now fully funded to move the Selinsing Gold Mine Project forward to the construction stage and anticipates gold production in the first half of 2009. The construction period of the treatment plant facility under current market conditions is expected to be completed within a year of commencement. Positive cash flow generated from commercial gold production will be applied to an aggressive but focused exploration program. The Company believes that the exploration potential for the region is significant, based on the data base of preliminary exploration results it has acquired on the land inventory now held and the land being acquired adjacent to its presently planned production facility.”
To complete the $28,048,000 private placement, the Company issued 70,120,000 units at $0.40 cents per unit, each unit comprising one fully paid share and one common share purchase warrant entitling the investor to purchase one additional common share of the Issuer at $0.50 per share for a three year term from closing.
Concurrently with the equity financing Monument entered into a convertible credit facility for up to $10.0 million over a three year term maturing July 15th, 2011 with interest of 3% payable in the first year in cash or shares at the option of the Company and thereafter in cash. Monument must draw down not less than $6.0 million but up to $10.0 M by no later than December 31, 2008 as needed to fund its development work. The credit facility can be repaid any time at the borrower’s discretion.
The credit facility is convertible into units at a price of $0.40 per unit each unit comprising a share and a half warrant. Each whole share purchase warrant is exercisable until July 15th, 2011 and entitles the holder to purchase one common share at a price of $0.75 if converted in the first two years of the facility and at a price of $0.83 if converted in the third year of the facility.
All common shares issued upon the private placement, conversion of the Note and exercise of the warrants issued on the private placement or conversion will be subject to a four month hold period expiring November 22,2008.
The financing, undertaken in Europe was an arm’s length transaction and 10% of total gross proceeds were paid as commission to Qualson Global Limited acting as Agent.
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 three reverse circulation/diamond drill rigs in order to continue and expand its exploration program on Monument’s Buffalo Reef property which is adjacent to the Company’s Selinsing Gold Mine Project and elsewhere. The funds will also be used for other general working capital purposes.
At the same time, the Company advises it has repaid the $9.0 M debenture held by the vendors of Selinsing Gold Mine Project by the due date prior to June 30, 2008.
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.
Release #8 - 2008