VANCOUVER, Feb. 21, 2012 /CNW/ - Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or the "Company") is pleased to announce that it has closed its acquisition of a 70% interest in the Mengapur Polymetalic Project located in Pahang State, Malaysia (the "Acquisition") through its wholly-owned Malaysian subsidiary, Monument Mengapur Sdn. Bhd. ("MMSB").
At closing MMSB acquired a 100% interest in Cermat Aman Sdn. Bhd. ("CASB"), the Company that holds 100% of the Mengapur Project. In exchange, MMSB: (i) arranged for the payment of an aggregate of US$60,000,000 in cash to the vendor of the Mengapur Project, Malaco Mining Sdn. Bhd. ("Malaco") and certain of Malaco's creditors; and (ii) issued 300 MMSB shares (representing a 30% interest in MMSB) to Malaco. As a result, Monument now holds an indirect 70% interest in the Mengapur Project.
The Mengapur Project is located in Central Malaysia in the State of Pahang near Sri Jaya, approximately 130 kilometers from Monument's wholly-owned Selinsing Gold Mine and approximately 12 kilometers from a highway and 75 kilometers from the Malaysian port of Kuantan.
Robert Baldock, President and CEO of the Company stated upon the closing of the Acquisition: "This acquisition is an exciting project which the company targeted in order to give Monument a more diversified portfolio of products and a longer operating future in Malaysia. This diversified portfolio includes iron, copper, sulfuric acid and gold, silver, and molybdenum among other minor elements. The Company will shortly begin a significant drilling and metallurgical test work program in order to be able to produce a detailed mine plan and make decisions on metallurgical circuits and production targets as part of a broader study."
The Acquisition was closed using the Company's cash on hand. As described in the Company's news release of February 2, 2012, Monument had intended to complete the Acquisition with the proceeds from its proposed $70 million private placement financing; however, Monument decided, and considered it in the best interests of the Company, to close the Acquisition using its cash on hand, given the Company's current working capital position and its continued cash flow from gold production generated by its existing operations. [...]"
Gruß, Legnano
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