Central Australian Phosphate and Monument Mining to Establish Phosphate Joint Venture

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[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, May 15, 2013 /CNW/ - Monument Mining Limited (\"Monument Mining\") and Central Australia Phosphate Limited (\"CEN\") are pleased to announce the signing of a binding Heads of Agreement\n (the \"Agreement\") under which they have agreed, subject to the satisfaction of the\n conditions detailed below, to establish a joint venture in respect of\n CEN's phosphate projects at Arganara, Lucy Creek and Warrabri (\"Phosphate Projects\") (\"Joint Venture\").\n\n\nHighlights\n\n\nJoint Venture to fund and support the continued exploration and\n development of CEN's Phosphate Projects.\n\n\nUnder the Agreement, Monument Mining may earn an interest in up to 51%\n of the Phosphate Projects for a total investment of A$8.8 million. \n Details of the earn-in include:\n\n\nupfront cash payment to CEN of A$1.5m to reimburse CEN for past\n expenditures to earn a 10% participating interest;\n\n\nfurther investment of A$7.3 million in the Phosphate Projects as\n follows:\n\n\nA$2.5 million commitment to earn a further 20% participating interest\n within 12 months;\n\n\na right to spend an additional A$2.8 million to earn a further 12.5%\n participating interest within 36 months; and\n\n\na right to spend an additional A$2.0 million to earn a further 8.5%\n participating interest within 54 months.\n\n\nCEN would then retain a 49% interest in the Phosphate Projects.\n\n\nMonument Mining shall, after consultation with CEN, appoint the manager\n of the Joint Venture.\n\n\nCEN and Monument Mining have the right to receive the share of phosphate\n product or other minerals recovered in proportion to their\n participating interest.\n\n\nMonument Mining is entitled to a right of first refusal to enter into\n offtake sales contracts with CEN for CEN's share of phosphate product\n or other minerals recovered, with the terms of such contracts to be\n negotiated by the parties in good faith.\n\n\nCEN to retain control and ownership of all CEN non phosphate projects.\n\n\nThe transaction with Monument Mining is subject to conditions precedent\n including CEN shareholder approval. CEN's directors unanimously recommend shareholders vote in favour of the\n relevant resolutions, in the absence of a superior proposal.\n\n\nThe Joint Venture\n\n\nUnder the Joint Venture, Monument Mining will make a total investment of\n up to approximately ...

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