Moncoa announces RTO to enter the gold mining industry

TSX-V: MON

VANCOUVER, May 2 /CNW/ - Moncoa Corporation (TSX-V:MON) (the "Company")
has signed a Letter of Intent (LOI) dated Wednesday 27th April 2005 and
announces it will enter the gold mining industry by the acquisition of
operating gold mining assets from Able Return Sdn Bhd (Able) and change its
name to Monument Mining Limited. Able is at arms length to the Company and is
the corporate trustee of a unit trust representing approximately 20 private
and independent trust unit holders, none of whom are or have previously been
associated or connected with the Company. Mr. Peter Steven Kestel, a unit
holder of the Able group, may be considered a control person under the
policies of the TSX Venture Exchange, and is also at arms length to the
Company.
The Company can obtain an option to acquire a 51% controlling joint
venture interest in a processing plant and gold mining property in Pahang
State, Malaysia, subject to raising not less than $1,100,000 cash, as well as
satisfactory completion of due diligence, shareholder and regulatory
approvals. The Company will raise the funds by the issue of fully paid
treasury stock. The above property is not presently in production.
Use of the funds raised will be to upgrade an existing Preliminary
Feasibility Study (PFS) prepared in June 1998 by Dover Consultants Pty Ltd,
which recommended advancing the project to Final Feasibility Study status
(FFS). Snowden Mining Consultants Pty Ltd of Perth Western Australia have been
approached to prepare the FFS to comply with NI-43-101 standard. In addition,
the funds will be used to secure key mining equipment components and to pay
the costs of the reverse take over ("RTO") transaction. Zaidi Harun BSc.,
qualified geologist has reviewed and approved the technical information
contained in this news release.
Moncoa will raise $1,100,000 and upon closing, the Company plans to
exercise the option to acquire the controlling 51% interest in the joint
venture. The interest will be paid for by the issue of not less than
55,000,000 fully paid treasury shares, or such higher consideration as
determined by an independent valuation report, resulting in a change of
control in the Company.
The joint venture will own and operate the Selinsing Gold Mine, which
contains the following historical mineral resource, identified in the above
referred to PFS, which the Company believes to be reliable and relevant. None
of the historical resource has been mined. The resource categories are
believed to be the same or comparable to NI-43-101 resource categories. The
work in the PFS was carried out by individual or corporate members of the
AUSIMM and the reported reserves and resources are in accordance with JORC
Code and ASX recommendations as at the date of the report.

Measured Resource        1.637Mt        3.29g/t        173,200 ounces
Indicated Resource       1.209Mt        1.81g/t         70,400 ounces
                                                      ---------
                                                       243,600 ounces
                                                      ---------

Upgrading the PFS to a FFS and producing a bankable NI-43-101 compliance
report will allow the Company to apply for a project secured loan of up to
$10,000,000 to place the project into production. Erection and commissioning
of a 1,200 tonne per day treatment plant is planned with start-up of this
facility scheduled for the end of second quarter 2006. Planning for this plant
is well advanced.
At the same time, The Company has entered into an agreement that will see
the disposal of its existing clinical trial business, subject to shareholder
and regulatory approvals, to Mr. Douglas Keller who will step down as
President and Chief Executive Officer of Moncoa to manage the ongoing medical
business as a private company, and to assist in the transition to a mining
management group. Mr. Keller has also granted an option over 6,000,000 of his
free trading shares to the control group of Able to facilitate the
transaction. All of the shares issued to Able by the Company or optioned by
Able control group members from Mr. Keller, or any control or insider parties
will be the subject of a pooling agreement, the details of which are not yet
available.
The Company will appoint Mr. R.F. Baldock as President and Chief
Executive Officer effective shortly after this announcement, to take the
company forward into the mining industry. Mr. Baldock has had extensive
experience in the mining industry and as President and CEO of public mining
companies. He was the founder and at various times between 1982 and 1988
Managing Director and Executive Chairman of Golconda Minerals of Australia and
President, CEO and Director of Nevada Goldfields Group of Companies in Canada
and the USA, listed on the TSX, ASX and NASDAQ Exchanges respectively, among
other roles in the industry. He is a qualified CPA and during his tenure,
these companies raised the funds and built and successfully operated five 1200
tonnes per day carbon-in-pulp plants in Australia and the USA over that
period.
Under the policies of the TSX Venture Exchange the acquisition, including
the disposal of the medical business, is categorized as a major transaction
and an RTO, which may require a halt in trading Company securities.
The Company will also seek to raise $3,000,000 by way of share issue, for
the purpose of acquiring 100% of the rights over an adjacent mining property,
described as MC 1/124, also owned by Able, which contains much of the
necessary infrastructure to develop the mining project, construct and operate
a treatment plant and conduct exploration programs on the property and in the
general region, for $2,250,000 cash. MC 1/124 has an established crushing,
grinding, and gravity separation treatment facility capable of treating
320 tonnes of hard rock material per day. Production from that facility is
scheduled to commence processing material identified by the Company on
MC 1/124, but not contained in reported resources as indicated in the PFS, by
June 2005. There are no assurances as to the volume of material that will be
available to the treatment plant from this source, at this time.
Presently situated on MC 1/124 there is a heap leach operation treating a
tailings measured resource described in the pre-feasibility study as
1.109 million tonnes of tailings grading 1.1 grams per tonne. Of this
approximately 700,000 tonnes has been treated. The treatment facility is
comprised of the leach pads, pregnant cyanide liquor collection tanks,
activated carbon filled tanks, and a stripping, electro-winning and smelting
circuit. This measured resource is believed to be reliable and relevant. The
resource category is believed to be the same or comparable to NI-43-101
resource categories. The resource was contained in the PFS prepared by Dover
Consultants Pty. Ltd. in June 1998.

Completion of the LOI transaction is subject to a number of conditions,
including but not limited to, Exchange acceptance and disinterested
Shareholder approval. The transaction cannot close until the required
Shareholder approval is obtained. There can be no assurance that the
transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in connection with the
transaction, any Management Information Circular and/or Filing Statement to be
prepared in connection with the transaction, or any information released or
received with respect to the RTO may not be accurate or complete and should
not be relied on. Trading in the securities of Moncoa Corporation should be
considered highly speculative.
The above acquisitions are subject to due diligence and Shareholder and
regulatory approvals. Shareholder approval will be sought at a meeting of
shareholders, which is scheduled to be held prior to 27th August 2005.
Haywood Securities Inc. have been appointed as Corporate Advisers to the
Company. In addition, subject to completion of satisfactory due diligence,
Haywood has agreed to assist the Company by acting as sponsor in connection
with the transaction. An agreement to be sponsor should not be construed as
any assurance with respect to the merits of the transaction or the likelihood
of completion.

The TSX Venture Exchange has in no way passed upon the merits of the
    proposed transaction and has neither approved nor disapproved
                 the contents of this news release.

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