Business
Monument Acquires Second Mill for Future Production Plant Upgrade
Monument Acquires Second Mill for Future Production Plant Upgrade
About this update from Monument Mining Limited
[{"type":"text","content":"Monument Acquires Second Mill for Future Production Plant Upgrade\n\n\n\nMonument Acquires Second Mill for Future Production Plant Upgrade\n\nVancouver, British Columbia CANADA, May 26, 2008 /FSC/ - Monument Mining Ltd. (MMY - TSX Venture, D7Q1 - FWB), (\"Monument\" or the \"Company\") announces that it has reached an agreement to acquire a 1.0 M tpa mill from Avocet Mining PLC (\"Avocet\"), its 19.4% shareholder, in readiness for an intended upgrade of its planned Stage I gold treatment plant construction program at its 100% owned Selinsing Gold Mine project (\"Selinsing\") in Pahang State, Malaysia.\n\nThe Stage I 400,000 tpa gold treatment plant is designed to initially produce approximately 40,000 ounces of gold per annum with a crushing circuit installed suitable for a planned Stage II plant extension to increase production. In addition to the first 400,000 tpa mill purchased last year for the Stage I Selinsing CIL gold treatment plant, this second mill will be reserved for the Stage II future plant upgrade. \n\nMonument is taking advantage of the immediate availability of the 1.0 M tpa mill from Avocet. The acquisition and relocation of the mill to the Selinsing site is readily and economically feasible since the twin of this mill has recently been installed in Avocet's plant upgrade at the nearby Penjom Gold Mine in Pahang State, Malaysia, approximately 40 Kilometres away from Selinsing. The long waiting times for equipment delivery and constant price increases under the current industry climate makes this acquisition attractive.\n\nThe $3,250,000 consideration for the mill will be paid by issuance of 8,125,000 units of Monument's equity at $0.40 per unit, on the same terms as the private placement announced on May 13, 2008, subject to necessary regulatory approvals. Each unit represents one share and one share purchase warrant exercisable for $0.50. \n\nMonument has recently announced it will raise $28.0 million by way of private placement and $10.0 million by way of a Convertible Note in order to build its planned Stage I 400,000 tpa CIL gold treatment plant, develop the Selinsing open pit gold project, as well as acquire two new convertible RC/diamond drill rigs for exploration expansion at Buffalo Reef and elsewhere and eliminate the present $9.0 million debt. \n\nSubject to closing th...