VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 31, 2017) - Monument Mining Limited (TSX VENTURE:MMY) (FRANKFURT:D7Q1) "Monument" or the "Company" reports the following developments in its litigation matters in Malaysia.
MERSING
Monument and its Malaysian subsidiary filed a suit in the Shah Alam High Court against Emas Kehidupan Sdn. Bhd. ("EK") and its shareholders: Zackry Mohamed Iwaz and Kesit Pty Ltd, a company controlled by Peter Steven Kestel (together the "Vendor Group", "Defendants") due to non-fulfillment of condition pursuant to an Earn-in Agreement ("Mersing Transaction") signed in September 2011. In March 2016, the High Court awarded a judgment and costs against the Defendants. Monument has collected Cash of RM1,790,299.00 (equivalent to $500,000 cash consideration paid plus interest of $75,674) in full and had returned 1,500,000 Monument shares to treasury. The High Court's decision was re-affirmed by the Court of Appeal.
The Defendants filed a Motion for Leave to Appeal to the Federal Court but however dismissed with costs on July 17, 2017. The Federal Court is the highest court and the final appellate court in Malaysia. The Judgment awarded to the Company is thus final as there is no further avenue for the Defendants to appeal. The Mersing suit is now closed.
THE 5% JV SUIT
In respect of the JV suit, a five (5) days trial was scheduled to proceed on July 24, 2017 to July 28, 2017 but was stayed pursuant to the Court of Appeal Order obtained by Monument on July 21, 2017, pending disposal of Monument's appeals against the striking out orders of its suit at the Kuantan High Court ("Kuantan Suit" as described below).
The 5% JV claim was filed by Selinsing Ming Sdn. Bhd. ("SMSB"), a company now wholly owned by Kesit Pty. Ltd. ("Kesit"), against Monument and two of its subsidiaries (the "Defendants") in October 10, 2012, more than 5 years after Kesit and other vendors sold 100% of the Selinsing Gold Project to Monument for valuable consideration.
The 5% JV Suit has no merit and the Company will continue to vigorously defend against all claims by the Plaintiff in the 5% JV Suit.
KUANTAN SUIT
Monument and its Malaysian subsidiary Able Return Sdn. Bhd. ("ARSB") filed a suit in the Kuantan High Court, Pahang Malaysia against Kesit Pty. Ltd. ("Kesit") and Peter Steven Kestel ("Kestel") for the return of the 100% of the issued shares of SMSB (the Plaintiff in the 5% JV Claim) to ARSB.
At closing of acquisition of the Selinsing Gold Project in June 2007, the 100% of SMSB shares were held in Trust for ARSB upon conditions set forth in the Sale and Purchase Agreement dated May 31, 2007. However, those shares were wrongfully transferred to Kesit, an Australian company wholly owned by Kestel and his wife. Kestel was added as a party in the Kuantan Suit in his personal capacity for his role in the entire process which saw transfer of the SMSB's shares.
The claim by Monument and ARSB was Struck Out by the Kuantan High Court based on Kesit and Kestel's application in June 2017, respectively. Monument and ARSB appealed against the striking out decisions. If the Appeals are allowed, the Kuantan Suit will be heard on merits by the Kuantan High Court as originally filed to determine the true ownership of SMSB.
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 190 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.
