Monument Mining hopes to advance the phased development of its Mengapur polymetallic project after securing the support of its major shareholder GoldMet.

GoldMet had previously expressed concerns regarding the company’s strategy and management team, but has now nominated a candidate for election to the Monument Board of Directors.

Monument’s chief executive officer Robert Baldock says, “We value GoldMet’s commitment to Monument’s progress, our team and the strategy we are pursuing.”

The company has agreed to reduce the size of the brokered private placement which was announced in December last year to raise no more than $26 million on a sale of 52 million common shares. The first tranche of the placement has recently closed.

With GoldMet’s support, Monument intends to pursue other financing alternatives to carry out the phased development of Mengapur.

“Management’s capital-raising and operational plans are focused on the development of our Mengapur polymetallic project. As well, we continue our track record of low-cost gold production at Selinsing mine. We believe that this work, along with our other projects, will continue to create value for all shareholders as we continue with our strategy of becoming a mid-tier gold and metals producer,” says Robert Baldock.

Meantime, Monument has settled a legal dispute with Tulum Corporation and its sole-shareholders Francois Marland, who claimed damages against the company due to a number of matters including the cancellation of the proposed private placements originally announced in 2011 and 2012 and Monument’s acquisition of the remaining 30% of Mengapur.

Under the terms of the settlement agreement, Monument will make two cash payments to Tulum of $6 million each. In turn, Francois Marland has agreed to invest $6 million for the purchase of 12 million shares in the company’s brokered private placement, and has also agreed to fully support Monument’s management and Board, releasing Monument from any claims related to these matters.

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