TORONTO (miningweekly.com) – Malaysia-focused gold producer Monument Mining on Friday said it would proceed with an $80-million private placement offering and disavowed a statement made by 26% shareholder GoldMet yesterday, saying the companies had agreed that Monument cancel the financing, among other points of contention.

Monument on December 17, 2012, announced a private placement financing of up to 160-million common shares at a price of 50c a share for the initial development of the Mengapur polymetallic project, and for general corporate purposes.

However, GoldMet on January 14 said it was “extremely disappointed” that Monument sought to issue up to 76% of the number of its current outstanding common shares in what it said would be a highly dilutive financing.

GoldMet said it was alarmed that Monument apparently sought to bring strategic investors into the company, possibly in a manner structured to avoid shareholder approval, and that it was avoiding accountability to shareholders at its overdue yearly shareholder meeting.

The concerned shareholder on Thursday said Monument had agreed to cancel the $80-million brokered private placement, led by Mackie Research Capital, and, with the support of GoldMet, would pursue other options to satisfy its planned capital expenditure requirements.

However, Monument on Friday reiterated no agreement had been reached and it would proceed with the financing.

One of GoldMet’s concerns was that financial statements of Monument for the year ended June 30, 2012, disclosed net income of more than $59-million.

It is understood that technical advisers to Monument had recommended a $14.1-million drilling programme be undertaken on the Mengapur project. The concerned shareholder said it believed that the financing in no way justified issuing 76% of the current stock of Monument in the proposed $80-million financing.

Monument’s stock trading on the TSX-V closed at 42.5 Canadian cents apiece on Friday.