MEDIA
RELEASE
11 May 2007
MONARCH PLACEMENT AND ENTITLEMENTS ISSUE
Monarch Gold Mining
Company Limited (ASX:MON) is pleased to announce that it has agreed to a
placement to sophisticated investors of 28 million shares at 25 cents raising
A$7 million.
In addition, the Company
plans to raise up to $19.5 million from a Non-Renounceable Share Entitlement
pursuant to a prospectus to be lodged with the Australian Securities and
Investments Commission today. Monarch will be offering up to 78,171,395 shares
at an issue price of 25 cents per share to Eligible Shareholders on a basis of
one new share for every four shares held at the Record Date. The entitlements issue
is not underwritten.
Monarch Chairman Michael Kiernan said the placement and entitlements
issue if fully subscribed would ensure Monarch remains debt free and cashed up
to escalate exploration at Minjar and Bellevue as production commences at
Davyhurst and Mt Ida.
“Mining will start
at Davyhurst this month, Mt Ida site works are well underway and Monarch
shareholders will see the first gold bar poured in late July.
“Reaching production
from Davyhurst and Mt Ida, with an average head grade of a high 5.3 g/t, is a
significant milestone. The Board is focused on increasing shareholder value
through a well-funded exploration campaign at Minjar and Bellevue to increase resources and reserves,”
Mr Kiernan said.
Mr Kiernan added he
believed the opportunities in front of Monarch are extraordinary and the
benefits of being debt-free would enable Monarch to continue to evaluate a
number of acquisitions as the company strives toward its goal to become a
500,000 ounce p.a. gold producer by December 2009. He also confirmed it is his
intention to take up his entitlement.
For further information,
please contact:
Michael Kiernan Warrick Hazeldine
Executive Chairman
- Monarch Gold Purple
Communications
Tel: 08 9481 6422 Tel:
+61 (0)8 9485 1254 Mob:
0417 944 616
Background
Monarch Gold Mining
Company was formed and listed on the ASX in 2002 by a group of experienced
Australian mining executives.
The Company has a
resource base of more than 2.4 million ounces, two state-of-the-art gold
treatment plants, and has dominant ground positions in the prolific gold mining
region to the north-west of Kalgoorlie.
Since November 2005,
Monarch has laid the foundations for its growth as a mid-tier Australian gold
production company. It acquired the Davyhurst Gold Project in November 2005,
and in 2006 reached agreement with Gindalbie Metals to acquire the Minjar gold
projects 500km north-east of Perth. Monarch also completed a merger with
Siberia Mining Corporation Limited in 2006, which provided access to Siberia
1.2 million ounce resource base, and the largest Australian-controlled ground
position in the Kalgoorlie
region. Monarch also has the ground package surrounding the historic Bellevue
Gold Mine near Leinster. In March 2007,
Monarch acquired the rich Mt Ida project, located within the 120 kilometres of
Monarch’s Davyhurst Mill, from International Goldfields Limited.
Growth Strategy
Monarch’s
growth strategy is focused on four potential production centres in Western Australia:
Davyhurst - gold resources of over
2m oz within a 2,000 sq km tenement package and 1.2mtpa gold processing
facility (+1.2Moz historic production)
Mt Ida - resources are stated as
143,000t at 24.0 g/t containing 110,650 ounces of gold within three areas - the
Baldock, Whinnen and Meteor deposits, adjacent to the historic Timoni
underground gold mine which produced 265,000oz of gold. Monarch will commence
mining gold in July 2007.
Minjar - gold resources of over
400,000oz within a 1,722 sq km tenement package and 600,000tpa gold processing
facility (+120,000oz historic production)
Bellevue - gold resources of
120,000oz associated with the historic Bellevue Gold Mine, one of WA’
premier gold operations (750,000oz historic production)
Monarch’s strategy
has been to capture opportunities for the consolidation of gold development
assets which have not in the past realised their full potential, either due to
a lack of capital or to limited exploration.
Monarch is focussed on
gold production, with a target to be producing 500,000oz per annum by December
2009.
For
further information visit: www.monarchgold.com.au
So far
as it relates to ore and mineralisation, this report is based on information
compiled by John Davis, who is a Member of the Australian Institute of Mining
and Metallurgy and the Australian Institute of Geoscientist. Mr Davis has
sufficient experience which is relevant to the style of the mineralisation and
type of deposit under consideration and to the activity which he is
undertaking, to quality as a Competent Persons as defined in the 2004 Edition
of the Australasian Code for Reporting for Exploration Results, Minerals
Resources and Ore Reserves. Mr Davis is a full time employee of the Company.
This report accurately reflects the information complied by Mr Davis. Mr Davis
has consented to the inclusion of this information in the form and context in
which is appears in this report.
***
The new Spam Act commenced
on 10 April 2004. This Act is aimed at reducing the amount of unauthorised
emails you receive. You have been receiving e-mails containing
information and news releases from us on behalf of our clients because you are
an important contact of Purple Communications, a boutique stakeholder
communications consultancy. If you do not wish to receive such
emails from Purple, please click mailto: purple@purplecom.com.au
subject=UNSUBSCRIBE or reply to this email and put UNSUBSCRIBE in the subject
line and we will not email you again.
If you do not reply,
we will continue sending you relevant news and information via email. However,
all future emails will allow you to unsubscribe.