Monument Mining will sell up to 160 million shares in a bid to raise $80 million to funnel into its polymetallic project in central Malaysia.
The company has engaged a syndicate of agents including Mackie Research Capital and Salman Partners to complete the private placement, with an option of increasing the size of the offering by an additional 15%.
Monument’s president Robert F Baldock says, “We have worked closely with the agents to identify and select the best financing alternative which would allow us to develop our advanced-stage Mengapur polymetallic project. We are very pleased to announce this offering as it positions the company for future growth.”
The company has been engaged in negotiations with certain Malaysian strategic entities who have expressed an interest in subscribing for a significant portion of the offering, and the proposed $23.4 million private placement to Tulum Corporation which was announced in October is under review.
Monument wants to implement drilling, engineering design and plant construction works in a bid to achieve commencement of production in 2014.
Mengapur is 16km north of Seri Jaya in Pahang state. It contains a historical copper-sulphur-gold-silver resource defined by previous investigators in the 1980s. The A zone contains a historical skarn reserve that is at the south-eastern contact zone with the Bukit Botak intrusion complex as presented in a 1990 historical feasibility study by Normet.
Monument acquired a 70% interest in the project in February 2012, planning drill holes twinning the previous Malaysia Mining Corporation’s (MMC) intercepts in order to verify the historic results and 1990 feasibility study. One hole intersected 183.0 metres at 0.442% copper, 11.45% sulphur, 0.404 grams/tonne gold, 3.34 grams/tonne silver and 0.0024% molybdenum, comparing well with the historic drill results.
Monument says it is committed to advancing Mengapur, with the hope it can become a world-class gold operation like the company’s flagship Selinsing mine which is also in Malaysia.
The company is planning a vigorous defence of an opportunistic claim by Selinsing’s previous owners Selinsing Mining Sdn Bhd (SMSB). Monument says the claim is without merit. It has been filed in the High Court of Malaya in Shah Alam and alleges SMSB is entitled to a share of production/profit from Selinsing Gold Mine Manager Sdn Bhd.