Business
Monument Enters into Definitive Agreement for Acquisition of 70% of Mengapur Polymetalic Project in Malaysia
VANCOUVER, Dec. 2, 2011 /CNW/ - Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) ("Monument...
About this update from Monument Mining Limited
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, Dec. 2, 2011 /CNW/ - Monument Mining Limited (TSX-V: MMY and\n FSE: D7Q1) (\"Monument\" or the \"Company\") is pleased to announce that\n the Company, through its wholly owned subsidiary, Monument Mengapur\n Sdn. Bhd. (\"MMSB\") in Malaysia, has entered into the Definitive\n Acquisition Agreement with Diamond Hard Mining Sdn. Bhd., its\n shareholders and its wholly owned subsidiaries, Cermat Aman Sdn. Bhd.\n (\"CASB\") and Malaco Mining Sdn. Bhd. (\"Malaco\") (collectively the\n \"Malaco Group\"), all incorporated in Malaysia, to acquire 70% of the\n Mengapur Polymetalic Project (the \"Mengapur Project\" or the \"Project\")\n located in Pahang State, Malaysia. The acquisition remains subject to\n financing, shareholders' and regulatory approvals.\n\n\nUnder terms of the Definitive Acquisition Agreement, MMSB will pay\n US$60,000,000 in cash and issue 300 MMSB shares (representing 30%\n interest in MMSB) to Malaco in exchange for a 100% interest in CASB,\n the company that holds 100% of the Mengapur Project, except for certain\n magnetite materials contained in the soils. Of the total consideration,\n US$10,000,000 is to purchase iron ore materials contained within the\n skarn which were originally going to remain with the Malaco Group under\n the terms of the binding Memorandum of Understanding. A deposit of\n US$500,000 was paid to Malaco upon signing of the Definitive\n Acquisition Agreement, and US$4,500,000 was set up as Escrow Fund in\n securing the Mengapur Project. Upon closing of the acquisition, total\n US$5,000,000 shall applied against the purchase price. In the event\n that the acquisition does not closed by January 31, 2012, US$4,500,000\n shall become a loan to Malaco.\n\n\nRobert Baldock, President and CEO of the Company stated upon signing the\n Definitive Acquisition Agreement: \"I am very pleased to announce the\n signing of the Definitive Acquisition Agreement for the Mengapur\n Project. The Project is expected to bring significant value to our\n shareholders and to the regional economy, as well as a new challenge to\n Monument's enthusiastic management. We plan to make a significant\n capital investment to develop the Project further. We will be carrying\n out a resource update, open pit mine design, and design and development\n of a group of processing facilities. We also plan to conti...