Canada-based Monument Mining has signed a definitive agreement to sell its Malaysian subsidiary, Monument Mengapur (MMSB) to Fortress Minerals. MMSB owns a 100% interest in the Mengapur Copper and Iron Project in Pahang State, Malaysia.
“This is a part of our corporate restructuring that will spin off the base metal project and allow us to focus on the development of our gold portfolios in both Malaysia and Western Australia,” said Cathy Zhai, president and CEO of Monument Mining.
Under the terms of the agreement, Fortress will, in consideration for the shares of MMSB, pay Monument Mining US$30 million in cash and grant the producer a royalty of 1.25% of gross revenue on all products produced at the Mengapur Project.
The transaction is subject to Fortress shareholders’ approval, Singapore Exchange approval, and other conditions set forth in the definitive agreement. The closing date is expected to be within three months.