VANCOUVER, Nov. 17, 2014 /CNW/ - Monument Mining Limited
(TSX-V: MMY and FSE: D7Q1) "Monument" or the "Company" announces it
has entered into a "Deed of Variation Agreement" with Gascoyne
Resources Limited (ASX: GCY, "GCY" or "Gascoyne") to extend Closing
Date of the Proposed Transaction to no later than January 31, 2015 from November 20, 2014. Both parties remain committed
to satisfying the remaining conditions to completion.
The extension is primarily due to the complexity, the number of
projects, and number of parties involved which requires
more time for completion of due diligence, the streamlining
of the approval process and other logistical and practical
procedural issues. The postponement is also partially caused by the
delay for similar reasons of completion of the Tuckanarra
acquisition that has now closed (see separate news release
#29).
Proposed Transaction
The Proposed Transaction was announced on September 4, 2014 pursuant to the Heads of
Agreement entered in to by Monument and Gascoyne. It includes the
acquisition by Monument of a 50% interests in each of three
properties: Dalgaranga, Glenburgh and Mt. Egerton by way of joint venture arrangements
(collectively "Gascoyne JV Properties Acquisition"); and a
"part and parcel" private placement financing integral to
the Gascoyne JV Properties Acquisition to fund exploration and
development of the acquired properties. The proposed transaction
also includes Gascoyne Private Placements that allows both
parties to the transaction to have cross shareholding interests up
to 19.6% of each other.
The three Joint Venture mineral properties are situated in the
Gascoyne and Murchison regions of Western
Australia near the Company's Burnakurra and Tuckanurra
Projects. Upon closing, the Gascoyne acquisitions will add
significant potential to Monument in both gold resources and
exploration upside through substantially expanded land position and
prospective projects in its pipelines in proven and prospective
gold regions: both the Murchison and Gascoyne Districts have a long
history of gold exploration success and production over the last
100 years.
It is expected that the JV Properties Acquisition with Gascoyne
will bring together a business strategy that allow Monument to
build more gold processing facilities in addition to the Burnakurra
Mill in the Murchison area. It will also allow Monument to build a
strong partnership with a professional exploration team who have an
understanding of the geology in the Murchison and Gascoyne areas
and a proven success record in the discovery of gold resources and
developing them to JORC compliance standards at low cost.
While Monument intends to continue its mining operational
excellence in Western Australia,
its JV partner would be focusing on replacement of depletion and
increasing total inventory of ounces of gold in the ground for both
JV participants. The GCY JV Acquisition is also a part of
Monument's safe jurisdiction diversification strategy together with
its Murchison and Tuckanarra acquisitions, aimed to mitigate its
single country risk as well as a single source of cash flow risk,
once these projects can reach commercial production.
Mr. Baldock commented: "Despite the decline in the US dollar
gold price which has had an adverse impact on market cap of most of
mining companies around the world, Monument believes that its
business strategy of diversifying into safe jurisdictions to
mitigate its current single country risk as well as our single
source of cash flow is key for the Monument's continued
success. The Gascoyne transaction is integral to this
cautious growth strategy and we remain committed to closing the
transaction as quickly as possible. We remain excited by the
exploration potential of the Gascoyne projects and the Gascoyne and
Murchison regions as a whole as there has been a long history of
exploration success and gold production over the last 100
years"
Progress of Proposed Transaction
The Proposed Transaction is ongoing and subject to completion of
due diligence, a part and parcel private placement, final board
approval by the Board of Directors of Monument and other regulatory
approvals as required.
To initiate the Proposed Transaction, Monument has completed the
first private placement on September 4,
2014 by investing A$1,000,000 in Gascoyne for 4,000,000 Gascoyne
ordinary shares at a deemed share price of A$0.25 as a part of the commitment pursuant to
the Heads of Agreement. This investment has enabled Gascoyne to
continue its current exploration work on the JV properties while
both parties conduct and complete the due diligence on the Gascoyne
JV properties acquisition and part and parcel private placement
transaction.
Full due diligence is nearing completion. In addition to legal
and title due diligence, Monument has engaged an independent
technical due diligence team including Snowden International Mining
Consultants, Cube Consulting Geologists, Orway Mineral Consultants
and Animal Plant Mineral Environmental Consultants.
The first draft of a historic NI 43-101 report on each of the
Gascoyne properties has been completed and is under further review
by Darryl Mapleson (BSc (Hons),
FAusIMM) who is an independent qualified Geologist retained by
Monument Mining Limited as a Competent Person as defined by JORC
guidelines and a Qualified Person as defined by NI43-101.
Management and technical teams of Monument, Gascoyne, and
potential investors have visited a number of operation sites in
past two months including the Selinsing gold mine, Mengapur in
Malaysia; and Burnakurra project
in Murchison region, and three major Gascoyne joint venture
properties in the Gascoyne and Murchison regions of Western Australia. The parties are continuing
in exchanging the due diligence materials, and the information are
under analysis of all parties. The respective consultants' reports
will be compiled into a comprehensive Due Diligence Report when
completed.
About Monument
Monument Mining Limited (TSX-V: MMY, FSE:D7Q1) is an established
Canadian gold producer that owns and operates the Selinsing Gold
Mine in Malaysia. Its experienced
management team is committed to growth and is advancing several
exploration and development projects in Malaysia and Australia, including the development stage,
Mengapur Polymetallic Project in Malaysia; and the Murchison Gold Project and
Tuckanarra Project in Western
Australia. The Company employs approximately 300 people and
is committed to the highest standards of environmental management,
social responsibility, and health and safety for its employees and
neighboring communities.
Robert F. Baldock,
President and CEO
Monument Mining Limited
Suite 1580, 1100 Melville Street
Vancouver B.C. Canada V6E 4A6
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Forward-Looking Statement
This news release includes statements containing
forward-looking information about Monument, its business and future
plans ("forward-looking statements"). Forward-looking statements
are statements that involve expectations, plans, objectives or
future events that are not historical facts and include the
Company's plans with respect to its mineral projects and the timing
and results of proposed programs and events referred to in this
news release. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". The forward-looking statements in this news release are
subject to various risks, uncertainties and other factors that
could cause actual results or achievements to differ materially
from those expressed or implied by the forward-looking
statements. These risks and certain other factors include,
without limitation: risks related to general business, economic,
competitive, geopolitical and social uncertainties; uncertainties
regarding the results of current exploration activities;
uncertainties in the progress and timing of development activities;
foreign operations risks; other risks inherent in the mining
industry and other risks described in the management discussion and
analysis of the Company and the technical reports on the Company's
projects, all of which are available under the profile of the
Company on SEDAR at www.sedar.com. Material factors and
assumptions used to develop forward-looking statements in this news
release include: expectations regarding the estimated cash
cost per ounce of gold production and the estimated cash flows
which may be generated from the operations, general economic
factors and other factors that may be beyond the control of
Monument; assumptions and expectations regarding the results of
exploration on the Company's projects; assumptions regarding the
future price of gold of other minerals; the timing and amount of
estimated future production; the expected timing and results of
development and exploration activities; costs of future activities;
capital and operating expenditures; success of exploration
activities; mining or processing issues; exchange rates; and all of
the factors and assumptions described in the management discussion
and analysis of the Company and the technical reports on the
Company's projects, all of which are available under the profile of
the Company on SEDAR at www.sedar.com. Although the Company
has attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking statements, except
in accordance with applicable securities laws.
SOURCE Monument Mining Limited