VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 14, 2013) - GoldMet B.V. (the “Concerned Shareholder”) is extremely disappointed by the announcement that Monument Mining Limited (“Monument” or the “Company”) is seeking to issue up to 76% of the number of its current outstanding common shares in a highly dilutive financing. GoldMet notes that Monument is cash flow positive and has alternate sources of financing readily available. GoldMet is alarmed that Monument now apparently seeks to bring strategic investors into the company, possibly in a manner structured to avoid shareholder approval, and is avoiding accountability to shareholders at its now overdue annual shareholder meeting.
The Concerned Shareholder calls on Monument to convene a shareholder meeting as quickly as possible to consider the proposed offering and overdue annual business of Monument.
The Concerned Shareholder objects to a massive dilution to the interests of current shareholders in this cash-flowing investment at a time when the board should be looking to increase income for the benefit of shareholders rather than engaging in unjustified capital infusions without clear purposes for the proceeds.
The Concerned Shareholder notes the following particular issues with the conduct of Monument:
- Financial statements of Monument for the year ended June 30, 2012 disclose net income in excess of $59 million. Technical advisors to Monument have recommended a $14.1 million drilling program in connection with project development. The Concerned Shareholder believes that this in no way justifies the issuance of 76% of the current stock of Monument in the proposed $80 million highly dilutive financing.
- Monument obtained court approval to delay its annual meeting deadline to March 31, 2013, thus avoiding any annual meeting of shareholders in 2012, with an imminent possible transaction requiring shareholder approval as cover. The Concerned Shareholder has sought, but not yet received Monument’s commitment not to complete its highly dilutive placement in a manner that avoids shareholder approval and avoids being held to account by shareholders of Monument.
- If Monument truly seeks to fast-track development of the Mengapur Project, GoldMet understands that Tulum Corporation, which has previously offered shareholder approved financing, has agreed to finance Monument. Management has now, without consulting shareholders, apparently rejected that offered financing, and seeks instead to raise an amount of money that far exceeds the expert recommended work program at the Mengapur Project.
- Monument describes its engagement with “certain Malaysian strategic entities” to subscribe for “a significant portion of the [o]ffering”. The Concerned Shareholder objects to any backdoor takeover bids by way of such subscriptions and insists that an independent committee of the board of Monument be formed immediately to ensure that the interests of current shareholders are being respected.
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[emphasis ours]
No realignment in site. Monument sinks another $16 million cash into Mengapur and tries really hard to defend itself: http://www.monumentmining.com/s/news.asp?ReportID=566300
High fives indeed!
Under pressure, Monument cancels the $80 million private placement to pursue other funding options. Let’s see if they can work out something reasonable. How about a spinoff of Mengapur? I’ve said before that this project never made much sense as a part of Monument.
http://www.marketwire.com/press-release/goldmet-bv-and-monument-mining-limited-to-put-an-end-to-their-dispute-1754553.htm
Well, apparently not.
In response to the above, Monument says that no agreement has been reached and disavows GoldMet’s statements about the financing being withdrawn:
http://www.newswire.ca/en/story/1111581/monument-comments-on-goldmet-disclosure-no-agreement-reached