Monument Mining shareholder GoldMet opposes highly dilutive proposed transaction
VANCOUVER, Feb. 3, 2014 /PRNewswire/ - George Molyviatis and GoldMet B.V. (collectively "GoldMet"), holders in aggregate of 54,112,500 common shares (the "Shares") of Monument Mining Limited ("Monument") representing 19.67% of the 275,158,030 outstanding shares of Monument, announce their opposition to Monument's proposed acquisition of certain overburden topsoils on Monument's Mengapur project ("Mengapur") in consideration of issuing 25,000,000 to Malaco Mining Sdn. Bhd, its group of companies and shareholders ("Malaco").
Mr. Molyviatis states "In February, 2012, Monument announced that it had completed the acquisition of a 70% interest in Mengapur from Malaco in consideration of a cash payment of US $60,000,000. In a news release dated January 17, 2013, Monument announced that it had acquired the remaining 30% of Mengapur from Malaco in consideration of a cash payment of US $16,000,000. Subsequently, in its audited financial statements for the year ended June 30, 2013, Monument disclosed that inclusive of a further transaction cost of $7.46 million (CAD $7.65 million), in total $23,504,000 was paid to acquire the remaining 30% interest in Mengapur from Malaco.
Now Monument is proposing to issue 25,000,000 common shares to Malaco for certain overburden topsoils and the production of magnetite which were apparently retained by Malaco under the original acquisition of Mengapur.
GoldMet is concerned that this highly dilutive transaction, occurring at a time when Mr. Avner Kreimer has announced his intention to remove the current board, is a bid to disenfranchise current shareholders. Mr. Kreimer and his proposed slate of directors have stressed the need for a new independent board of directors who will control management's culture of entitlement, tighten oversight of acquisitions and refocus Monument's operations on its core assets. GoldMet is forced to question if this transaction is being undertaken with a view to increasing shareholder value or to place a large block of shares in the hands of parties that will support the incumbent board and management.
GoldMet urges Monument's shareholders to carefully consider whether Monument's current board is acting in the interests of shareholders, or if a change is needed to protect shareholder value. GoldMet strongly urges shareholders to vote in favour of Mr. Kreimer and his proposed slate of directors at Monument's AGM scheduled for February 7, 2014."
This news release includes forward looking statements that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning GoldMet's intentions, plans, estimates, expectations or beliefs regarding the future. Although GoldMet believes that any forward looking statements in this news release are based on reasonable assumptions, there can be no assurance that any such forward looking statements will prove to be accurate. GoldMet cautions readers that all forward looking statements, including without limitation those relating to Monument's future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.
Any forward looking statements are made as of the date of this news release, and GoldMet assumes no obligation to update the forward looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward looking statements. GoldMet assumes no obligation to update any forward looking statements, whether as a result of new information, future events or otherwise.
SOURCE GoldMet B.V.