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Monument Mining Limited announced it has entered into an Earn-In Agreement with a Malaysian company, Emas Kehidupan Sdn. Bhd. and its 30% joint venture partners, under which Monument has the right to earn up to a 100% interest in the Gunung Arong Gold Prospect through its wholly owned Malaysian subsidiary Damar Consolidated Exploration Sdn. Bhd.
The Mersing Gold Project is held through mining certificate #1221 for 256 hectares of prospective land, located approximately 30 kilometers north-west of Mersing Town in Jahore State, Malaysia. The original Malaysian Geological Survey identified a widespread geochemical anomaly that follows the north-west regional structural trend running for more than 30 kilometers, commencing near the beach at Kampung Sri Pantai running inland toward the Mersing Gold Project. The presence of widespread quartz veining within the highly deformed metasediments, sulphide mineralization and free gold showing in the vein material, and the evidence of substantial alluvial mining and processing activities indicate that the Mersing Gold Project has potential to host primary gold mineralization. To date, the area has not been systematically explored for its primary gold potential and no production details are available. Exploration at the Mersing Gold Project will provide an opportunity to understand the geological nature of gold mineralization within the Mersing district and, if successful, will create an opportunity for further discovery along the structural trend as defined by the Mineral and Geosciences Department of Jahore State. The Company has been investigating on this property for over two and a half years including field visits since 2008. Monument will initiate the first two year earn-in period by paying $500,000 cash and, subject to TSX Venture acceptance, issuing 1,500,000 fully paid Monument shares to the vendors in exchange for 70% of the shares in EK (which holds a 70% interest in the Mersing Gold Project), and accordingly a 49% interest in the Mersing Gold Project. Initiation of the first two-year earn-in period results in an exploration obligation totaling $2,000,000 to be completed within two years. The Company has the right to earn a further 21% interest in the Mersing Gold Project by making either, at the option of the vendors, a further $1,500,000 cash payment to the vendors or by issuing 2,500,000 fully paid Monument shares to the vendors in order to acquire the remaining 30% of the issued EK shares bringing its interest in the Mersing Gold Project to 70%. Initiation of the second two-year earn-in period results in a further exploration obligation totaling $2,000,000 to be completed by Monument within two years. Upon reaching a 70% ownership level in the Mersing Gold Project, the Company has the right over the following 180 day period to buy out the remaining 30% interest achieving 100% ownership in the Mersing Gold Project. The consideration of buy-out will be based on an independent valuation and be paid in cash or by issuing shares of Monument at the option of the vendors. Throughout these arrangements Monument will be the sole operator and manager of the Mersing Gold Project. President and CEO Robert Baldock stated: "This agreement is a demonstration of the Company's previously announced intention to continue building a pipeline of projects in Malaysia. These projects will be acquired, developed and operated with minimal shareholder dilution through the surplus cash flow generated from the Selinsing gold production where mill capacity is expected to be increased to approximately 1,000,000 tpa from 400,000 tpa upon completion of the gold plant expansion". |
