Monument agrees to reduce financing under pressure from shareholder
TORONTO (miningweekly.com) – Malaysia-focused gold miner Monument Mining has agreed to reduce the size of an $80-million financing to no more than a further $26-million, following the closure of the first tranche of the financing totalling $15-million earlier this month.
Private shareholder GoldMet, with a 26% interest in the company, objected to the brokered private placement announced during December, saying 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 and unneccessary financing.
The two companies on Thursday said they have reached an agreement under which Monument would pursue other financing alternatives with GoldMet’s assistance, to satisfy its planned capital expenditure requirements to advance the phased development of its Mengapur polymetallic project.
Monument had agreed that it would not conduct any new private placement financings in the next twelve months without the reasonable consent of GoldMet. Further, GoldMet had agreed that any financing in connection with a listing of Monument’s shares on the Malaysia's stock exchange, the Bursa Malaysia Berhad, would be acceptable to GoldMet.
Monument had also agreed to nominate for election to its board of directors a candidate proposed by GoldMet, subject to approval of the nominee by Monument. GoldMet had chosen Jean Edgar Trentinian, who is already a director of Monument, as its nominee director.
Monument operates the low-cost Selinsing gold mine and is developing the Mengapur project in Malaysia.
TSX-V-listed Monument’s shares traded 4.6% lower on Friday at 41 Canadian cents apiece. From the start of the year the company’s shares have gained 7.32%.
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