VANCOUVER, April 21 /CNW/ - Moncoa Corporation (TSX-V: MON) (the
"Company") is pleased to announce that further to an announcement on 3 May
2005 regarding the intention to acquire a 51% controlling interest in the
Selinsing Gold Mine Project located in Pahang State, Malaysia (the Selinsing
Project), the Company has now closed a non-brokered private placement for
total gross proceeds of $575,000 through the issue of 4,600,000 fully paid
common shares at $0.125 per share. The shares are subject to a hold period,
which expires July 29, 2006. The Company paid a 10% financing fee to York
Street Capital Corp. who assisted in raising the funds.
The Company will use the funds to commission Snowden International Mining
Consultants Pty. Ltd. of Perth, Australia to produce a NI-43-101 report,
together with an independent valuation for shareholder information purposes.
In addition, the funds will be used to prepare an Information Circular for the
purpose of seeking shareholder approval to acquire the Selinsing Project,
which is considered a Reverse Takeover transaction ("RTO") at a Special
Meeting of shareholders, and for legal, audit and other expenses associated
with the transaction and for general working capital requirements in
connection with the RTO.
At the same Special Meeting shareholder approval will be sought to
consolidate the share capital of the Company on the basis of two existing
shares being consolidated for one new share. On a post consolidation basis the
Company also intends to raise up to a further $5,000,000 by way of a private
placement in addition to seeking a US$10,000,000 project loan facility, the
proceeds of which would be used to complete the Selinsing Project acquisition,
to commence an exploration program and to erect and commission a 400,000
tonnes per annum gold processing plant, designed to produce 40,000 ounces of
gold per annum from the Selinsing Gold Mine.
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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