Monument Mining Ltd. (TSX.V: MMY) ("Monument" or the "Company") is pleased to announce that it has executed a term sheet with Lascaux Resource Capital Fund I LP ("LRC") for US$1.3 million in convertible notes (the "Notes") and a US$13.0 million gold prepaid facility ("PFA", and combined with the Notes the "Proposed Investment"). The funds from the Notes are to be used for specific final technical work that is required as part of the conditions precedent of the PFA for the Burnakura Gold Project. The Company plans to raise additional capital that together with the PFA would be expected to place the Burnakura gold project into commercial production.
The closing of the Proposed Investment is subject to certain conditions precedent including but not limited to execution of a definitive agreement of both the Notes and the PFA, and board and regulatory approval. Closing is expected to occur in January 2017.
The Notes will be secured and have an annual coupon rate of 12% for a term of one year from closing date. The conversion price of the Notes will be $0.085 per share subject to regulatory approval, including acceptance of the TSX Venture Exchange. The Notes will mandatorily convert to equity of the Company upon the first draw down under the PFA, which will occur upon completion of conditions precedent including but not limited to specific final technical work and the Company raising the required capital referenced above. The conversion of the Notes is considered the first portion of this required capital. The PFA will be secured, will be advanced in up to two draw dates, and be repaid by delivery of 16,700 ounces of gold over a period of up to 45 months from first drawdown including a grace period of 12 months with no required deliveries. The PFA carried no other cash interest or offtake payment requirements.
Robert Baldock, CEO and President commented: "We are very pleased to take a step forward to complete the additional work including additional metallurgical test and mine optimization for certain areas of the project which would provide a higher level of assurance for success and potential acceleration of higher grade production. The early stage production will bring potential additional positive cash flow in to fiscal 2017 and build up significant value on our foundation - Selinsing and Murchison gold portfolios."
About Monument
Monument Mining Limited (TSX VENTURE:MMY)(FRANKFURT:D7Q1) is an established Canadian gold producer that owns and operates the Selinsing Gold Mine in Malaysia. Its experienced management team is committed to growth and is advancing several exploration and development projects including the Mengapur Polymetallic Project, in Pahang State of Malaysia, and the Murchison Gold Projects comprising Burnakura, Gabanintha and Tuckanarra in the Murchison area of Western Australia. The Company employs approximately 240 people in both regions and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities. The Company has also been seeking potential opportunities for larger resources in other countries.
Source: Monument Mining
