VANCOUVER, Sept. 12 /CNW/ - Moncoa Corporation (TSX-V: MON) is pleased to
provide an update of its proposed reverse takeover ("RTO") of the Selinsing
Gold Project located in Pahang State, Malaysia.
Pursuant to an Agreement dated June 30, 2006, as amended, Moncoa, through
its wholly-owned Malaysian subsidiary, Polar Potential Sdn. Bhd. ("Polar"),
proposes to purchase a 51% interest in Mining Concession 1/113 Sub-Lease and a
100% interest in Mining Concession 1/124 Sub-Lease, excluding a 49% interest
in the tailings and mined ore situated on MC 1/124. The consideration for the
purchase is $2,250,000 and the issuance of a sufficient number of Moncoa
shares so that the vendors will have approximately 50% of the outstanding
shares of Moncoa on closing.
The transaction, which is to close not later than October 31, 2006, is
subject to approval by Moncoa shareholders, acceptance by the TSX Venture
Exchange (the "Exchange"), and Moncoa raising on before the closing a minimum
of $3,150,000 and a maximum of $5,500,000.
In the event Moncoa succeeds in raising only $3,150,000, the vendor, Able
Return Sdn. Bhd. ("Able"), has agreed to defer the payment of $1,000,000 until
a date, which is not later than three months after commercial production is
achieved in respect to the Selinsing Gold Project. If Moncoa fails to raise
$5,500,000, Moncoa shall have nine months following the closing of the RTO to
raise the shortfall. For every share issued in respect to this subsequent
financing, Moncoa will issue one additional share to Able, provided that, in
any event, Able shall receive in the aggregate an additional 5,000,000 shares
of Moncoa at the end of the nine-month period.
Able is the Trustee of the Wira Mas Unit Trust established under the laws
of Malaysia, which, in turn, is the owner of all of the shares of Selinsing
Mining Sdn. Bhd. ("Selinsing"). Able, Selinsing and Polar entered into a Joint
Venture Agreement for the development of the Selinsing Gold Project, pursuant
to which Polar will have a 51% interest and Able a 49% interest, subject to
Moncoa being responsible for raising the estimated production financing of
US$12,000,000.
Attached to and forming part of this news release is a Memorandum
prepared by Snowden Mining Industry Consultants Pty Ltd ("Snowden") dated
August 22, 2006. Snowden was retained by Moncoa to complete a targeted program
of reverse circulation drilling to validate the historical reverse circulation
drilled data that tests the Selinsing Gold Project. In June of 2006, Snowden
had previously prepared a National Instrument 43-101 Report in respect to the
Selinsing Gold Project, which Report is available on www.sedar.com. An updated
independent Technical Report in respect to the resource estimate prepared by
Snowden will be filed on Sedar shortly.
Snowden have recommended that, at a cost of approximately $150,000, the
existing pre-feasibility study be reviewed and upgraded to determine the
feasibility of placing the project into production. This study would optimize
the resource, develop a mine plan, and determine the project viability. It
would also identify capital requirements of a planned approximately 400,000
tpa treatment plant and mine development program. It is estimated that project
funding would be in the order of US$12,000,000.
Concurrently with the RTO, Moncoa shareholders will be requested to:
<<
1. Approve the consolidation of Moncoa's shares on a one-new for two-old
share basis, to be effective prior to closing the RTO and the
concurrent acquisition financing, together with a change of name of
Moncoa to Monument Mining Limited.
2. Approve the sale of Moncoa's existing subsidiaries, Moncoa Medical
Research Inc. and ClinMed Research Centers Inc. to Douglas Keller,
the former President of Moncoa, in consideration of the assignment of
all of Moncoa's debt due to Mr. Keller, being approximately
$1,105,000, to the subsidiaries. Moncoa Medical has carried on
business as a contract research organization providing project
management, monitoring, data management, and statistical analysis for
client companies in the pharmaceutical and biomedical industry.
ClinMed provided site management organization services for contracted
physicians. During Moncoa's 2004 and 2005 fiscal years, companies in
the biomedical and pharmaceutical business significantly reduced
their contracting out of research and clinical trials. As a result,
Moncoa's gross revenues declined from a high of $2,950,000 in the
fiscal year ending August 31, 2001 to $169,000 for the fiscal year
ending February 28, 2006.
3. Approve a 10% Rolling Stock Option Plan. A meeting of Moncoa
shareholders is scheduled for October 25, 2006 to seek approval to
the RTO and related matters.
At the closing of the RTO, Able will own approximately 50% of the
outstanding shares of Moncoa. Able advises that it is widely held and that no
individual owns or controls more than 10% of Able.
At the closing of the RTO, the principals of Moncoa shall be:
Robert Baldock., President, CEO and Director - 25 years finance
experience with public company board roles, raising equity and
project funding and directing project development. Experienced
Mining Executive, Chair, President and CEO.
Carl E. Nissen, Director - 20 years EPC design, estimate and project
management with major mining construction company. Over 10 years as
mine, mill and smelter maintenance manager with major Canadian mining
company.
Zaidi Harun, Director and Vice President of Exploration, would hold
approximately a 10% interest in Able and will, therefore, have an
indirect interest of approximately 5% in Moncoa. Mr. Harun has had 15
years international mining industry field and mine geological
experience with 8 years of that time working on the Selinsing Project
site in Malaysia.
Adam Bradley, Director - Senior Metallurgical consultant with 12
years experience in mine supervision with major international mining
company.
Patrick Soares, Director - Geologist with 22 years experience in the
gold mining industry including 12 years as mine geologist and
relevant experience in industry Investor Relation roles.
Cathy Zhai - CFO and Company Corporate Secretary.
Gerald Ruth - Capital Markets and Financial Adviser - 16 years with
the Toronto Stock Exchange including 6 years as Head of Listings,
experienced public company Director, with corporate finance, merger
and acquisition and corporate governance experience.
>>
Haywood Securities Inc., subject to completion of satisfactory due
diligence, has agreed to act as sponsor to Moncoa in connection with the
transaction and agreement to sponsor should not be construed as any assurance
with respect to the merits of the transaction or the likelihood of completion.
Haywood would receive 500,000 post-consolidation shares on closing.
It is contemplated that the acquisition financing will consist of a units
offering at $0.50 per unit, each unit consisting of one share and one-half of
one warrant, each whole warrant entitling the holder to purchase one
additional share for a period of 24 months, at an exercise price of $0.75 per
warrant share during the first year and at an exercise price of $1.00 per
warrant share during the second year.
Completion of the transaction is subject to a number of conditions,
including 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 to accept as disclosed in the management
information circular being prepared in connection with this transaction any
information released or received with respect to the RTO may not be accurate
or complete and should not be relied upon. Trading in the securities of Moncoa
should be considered highly speculative.
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.
<<
MEMORANDUM SNOWDEN
To: Robert Baldock ------------------------------------
Company: Moncoa Corporation 87 Colin Street West Perth WA 6005
From: Michael Andrew PO Box 77 West Perth WA 6872
Copy: Mike Lawlor Tel: +61 8 9481 6690
Date: 22nd August 2006 Fax: +61 8 9322 2576
Project: Selinsing 5174 www.snowdengroup.com
Subject: Selinsing market release ------------------------------------
>>
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Moncoa Corporation (Moncoa) has completed a targeted programme of reverse
circulation (RC) drilling to validate the historical RC drill data that tests
the Selinsing Gold Project, located in Pahang State, Malaysia. The programme
was undertaken based on the recommendations of Snowden Mining Industry
Consultants (Snowden). Snowden reviewed the results of the drilling and
concluded that they support the tenor of the historical RC drilling. A well
mineralised area of the resource was selected and the nine drill holes
comprising the programme intersected mineralisation as expected based on the
previous drilling.
Snowden then proceeded with an estimate of the resource, using the
available historic RC and diamond core drill data. At a block cut-off grade of
0.75 g/t Au the Indicated Resource is 3.6 Mt at a grade of 1.76 g/t Au, for
205 kOzs of contained gold. At a block cut-off grade of 0.75 g/t Au the
Inferred Resource is 7.7 Mt at a grade of 1.34 g/t Au, for 332 kOzs of
contained gold. The new resource estimate has been prepared in accordance with
National Instrument 43-101 (NI43-101) and an independent technical report will
be filed on SEDAR shortly.
<<
1 VALIDATION DRILLING PROGRAMME
-----------------------------
In accordance with recommendations made in the Independent Technical
report dated June 2006 and prepared in accordance with NI43-101, Moncoa
undertook a programme of targeted RC drilling to confirm the tenor of the
historical RC data. Nine drill holes, SELRC0510 to SELRC0518, located as
summarised in Table 1.1, were drilled and the significant results summarised
in Table 1.2. Results greater than 0.5 g/t Au and with a down hole thickness
of greater than 5m are reported; no top cutting has been applied. Holes are
drilled inclined at 60 degrees with an azimuth of 270 (local grid) and are
designed to normally intersect the mineralisation, so that the down hole
thickness, reflects the true thickness.
Table 1.1 Drill hole location summary (local grid)
Hole ID Northing Easting RL Depth Dip Azimuth
(m) (m) (m) (m)
SELRC0510 1990.2 790.5 500.94 60 60 270
SELRC0511 1990.2 810.2 500.87 66 60 270
SELRC0512 2009.8 790.6 501.30 72 60 270
SELRC0513 2009.8 809.9 500.78 72 60 270
SELRC0514 2030.3 790.7 499.18 60 60 270
SELRC0515 2030.0 810.5 499.55 72 60 270
SELRC0516 2051.7 789.8 499.20 54 60 270
SELRC0517 2050.4 809.8 499.99 72 60 270
SELRC0518 1969.7 792.2 500.94 72 60 270
Table 1.2 Drill assay summary results
Down hole
Hole ID Hole From To Thickness Au
Type (m) (m) (m) (g/t)
SELRC0510 RC 23 29 6 8.33
Includes 27 28 1 31.40
SELRC0510 RC 46 60 14 3.15
Includes 39 40 1 41.70
Includes 59 60 1 22.40
SELRC0511 RC 41 49 8 6.60
Includes 48 49 1 36.80
SELRC0512 RC 32 64 32 1.72
SELRC0513 RC 66 72 6 1.83
Includes 61 62 1 20.40
SELRC0514 RC 31 42 11 0.95
SELRC0515 RC 60 69 9 9.15
Includes 65 66 1 35.80
SELRC0516 RC 24 35 11 4.84
SELRC0518 RC 2 14 12 2.45
SELRC0518 RC 25 36 11 4.02
SELRC0518 RC 42 49 7 12.30
Includes 46 47 1 52.90
SELRC0518 RC 53 67 14 15.52
Includes 54 55 1 51.90
Includes 57 58 1 60.00
Includes 61 62 1 38.90
Snowden supervised the drilling and sampling. Industry standard QAQC
protocols were followed which included certified reference materials
comprising a range of standards and a blank which were independently inserted
into the sample stream prior to analysis. Field duplicates were also taken
during the drilling programme. The samples were submitted to the Ultra Trace
Pty. Ltd. (Ultra Trace) laboratory located in Perth, West Australia. Samples
underwent a 40 g Fire Assay with analysis by ICP. Snowden has reviewed the
programmes QA/QC data and found the results to be acceptable for the style of
mineralisation.
2 RESOURCE ESTIMATE
-----------------
The resource estimate for the Selinsing Gold Project is summarised in
Table 2.1, which reports the resource by classification and oxidation.
Table 2.1 Resource estimate Selinsing Gold Project, as at August 2006
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Cut-off Classification Oxidation Tonnes Grade Metal
(Au g/t) (kt) (Au g/t) (kOzs)
0.75 Oxide 2,100 1.78 120
0.75 Indicated Sulphide 1,530 1.72 85
0.75 Total 3,630 1.76 205
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Cut-off Classification Oxidation Tonnes Grade Metal
(Au g/t) (kt) (Au g/t) (kOzs)
0.75 Oxide 387 1.25 16
0.75 Inferred Sulphide 7,302 1.35 317
0.75 Total 7,689 1.34 332
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>>
The resource estimate has been prepared in accordance with NI43-101.
Snowden is currently preparing an independent technical report in relation to
the resource estimate and this report will filed on SEDAR shortly.
The new resource estimate has been prepared by Snowden based on data and
geological interpretations provided by Moncoa. Snowden has reviewed the
drilling and sampling data underlying the resource estimate and has verified
that the data is of sufficient quality to support the resource classification.
Snowden used multiple indicator block kriging to estimate gold grade into a
unconstrained block model reflecting the interpreted geology. Snowden also
visited the Selinsing Gold Project site as part of the resource estimation
process. Snowden considers the resource classification recognises the risk
inherent in the estimate. Snowden judges that the potential exists for the
mineralisation to be more discreet, which would result in a reduction in
tonnes and an increase in grade at the reported cut-off, though the contained
ounces would remain approximately the same. Snowden believes that once
production starts at Selinsing this issue will be resolved by reconciliation
and geological monitoring of production.
The resource is reported at a cut-off grade of 0.75 g/t Au. The use of
multiple indicator block kriging limits the influence of outliers in the data
set. Search ellipses and ranges used in the estimation reflect the spatial
continuity and geological trends of the resource. Average in-situ densities of
2.53 t/m3 and 2.7 t/m3 have been applied to the oxide and primary
mineralisation respectively, reflecting a range of determinations undertaken
to date. As more density data is acquired, these values will be reviewed.
Kriging neighbourhood analysis was undertaken to optimise the estimation
parameters in order to minimise conditional bias in the estimate.
Snowden considers that Moncoa should be able to increase the confidence
and size of the Selinsing resource through additional drilling. The bulk of
the inferred material lies below 400 mRL and represents an exploration target
for Moncoa. Snowden expect that as more data is acquired at depth the
estimated tonnage will decrease and the grade increase as the mineralisation
becomes better defined.
Information in this news release relating to mineral resources and
mineralisation for the Selinsing Gold Project is based on information compiled
by a Qualified Person as defined in National Instrument 43-101, being Mr
Michael C. Andrew (B.Sc(Geol), M.AusIMM) of Snowden Mining Industry
Consultants Pty Ltd. Mr Andrew has sufficient experience in mineral resource
estimation relevant to the style of mineralisation and type of deposit under
consideration, and consents to the inclusion in this news release of the
matters based on his information in the form and context in which it appears.
Michael Andrew
"signed"
Principal Consultant Resource Evaluation
%SEDAR: 00008911E
