Monument Mining has acquired an indirect 70% interest in the Mengapur polymetallic project in Malaysia’s Pahang State via its wholly-owned subsidiary Monument Mengapur Sdn Bhd (MMSB). MMSB acquired Cermat Aman Sdn Bhd which owns the Mengapur project, for a US$60 million payment and 300 MMSB shares.
Mengapur is in central Malaysia near Sri Jaya, about 130km from Monument’s wholly-owned Selinsing gold mine and 75km from the Malaysian port of Kuantan.
The company’s president Robert Baldock says, “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, sulphuric 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,” he said.
Monument used its cash on hand to close the acquisition, despite earlier intending to use the proceeds from its proposed $70 million private placement financing. The cashflow has been generated by its existing gold operations.
The company will proceed with its private placement in order to fund future exploration and development expenditures at Mengapur.