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Monument Announces $38.0 M Capital Raising to Commence Plant Construction and Expand Exploration Activities
Monument Announces $38.0 M Capital Raising to Commence Plant Construction and Expand Exploration ...
About this update from Monument Mining Limited
[{"type":"text","content":"Monument Announces $38.0 M Capital Raising to Commence Plant Construction and Expand Exploration Activities\n\n\n\nMonument Announces $38.0 M Capital Raising to Commence Plant Construction and Expand Exploration Activities\n\nVancouver, British Columbia CANADA, May 13, 2008 /FSC/ - Monument Mining Ltd. (MMY - TSX Venture, D7Q1 - FWB), (\"Monument\" or the \"Company\") is pleased to announce that it will proceed with a private placement to raise aggregate $38.0 million dollars, subject to shareholder and TSX-Venture Exchange's approval, to be fully funded to complete construction of its 100% owned Malaysian Gold Mine Project, advance exploration programs and discharge an existing $9.0 million debt.\n\nThe Company has arranged to raise $28.0 million dollars of equity, through a non-brokered private placement at a price of $0.40 per unit (plus an allowance for oversubscription for an additional $3.2 million). Each unit consists one share and one share purchase warrant of the Issuer. Each share purchase warrant entitles the holder to acquire one share of the Issuer at $0.50 per share. This is an arm's length financing and 10% of total gross proceeds will be paid as commission to the Agent for this transaction. \n\nConcurrently with the equity financing Monument proposes to secure a convertible credit facility for up to $10.0 million with a three year term and interest at 3%. Monument would draw down not less than $6.0 million by December 31, 2008 as needed to fund its development work. The interest for the first year would be payable in shares or cash at the discretion of the Company and in cash thereafter.\n\nThe credit facility will be convertible into units being one share and one half warrant, the warrant being exercisable at $0.75 if converted in the first two years of the facility and $0.83 if converted in the third year of the facility. The conversion share price on the facility is to be $0.40 per unit in respect to funds drawn down by December 31, 2008.\n\nThe equity financing will require shareholder consent as it will create a new control position. Monument presently has two shareholders holding more than 50% of the present outstanding shares and they have indicated they will consent to the equity financing and the credit facility.\n\nThe private placement a...