Monument Mining has abandoned its interest in the Mersing project in Malaysia’s Johor State and will commence legal proceedings against its earn-in partners after concerns the project’s mining certificate won’t be renewed.
The company announced its acquisition of a 49% stake in the project in September 2011, completed through its wholly-owned Malaysian subsidiary Damar Consolidated Exploration Sdn Bhd.
Monument initiated a two-year earn-in period by paying $500,000 cash and issuing 1.5 million common shares to joint venture partner Emas Kehidupan Sdn Bhd (EMK) in exchange for the Mersing interest. Under the conditions of the agreement, Monument was to complete a $2 million exploration program at the project site during the first two years.
“Monument has decided to abandon its interest in the Mersing project sue to uncertainties regarding the registration and renewal of the mining certificate for the 256 hectares of prospective land that comprise the project,” says president Robert Baldock.
“We will not be completing any exploration activities on the project or pursuing an earn-in of an interest in the project. Monument is reviewing its legal position regarding the earn-in agreement and reserves the right to commence legal proceedings against EMK, its shareholders, and the joint venture partners of EMK with respect to the agreement,” he says.
The Canadian gold producer owns and operates the Selinsing gold mine and boasts one of the lowest production cash costs in the world. Its management team is committed to growth and is advancing several exploration and development projects in Malaysia, including the advanced-stage Mengapur polymetallic project.
Monument employs 280 people in Malaysia and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighbouring communities.