Monument Mining Limited (MMY.V), which remains close to a recent year low of 41 cents, announced that it has entered into the Definitive Acquisition Agreement with the Malaco Group to acquire 70% of the Mengapur Polymetalic Project located in Pahang State, Malaysia. The acquisition remains subject to financing, shareholders' and regulatory approvals.
Under terms of the Definitive Acquisition Agreement, MMSB will pay US$60 million in cash and issue 300 MMSB shares (representing 30% interest in MMSB) to Malaco in exchange for a 100% interest in CASB, the company that holds 100% of the Mengapur Project, except for certain magnetite materials contained in the soils. Of the total consideration, US$10 million is to purchase iron ore materials contained within the skarn which were originally going to remain with the Malaco Group under the terms of the binding Memorandum of Understanding. A deposit of US$500,000 was paid to Malaco upon signing of the Definitive Acquisition Agreement, and US$4.5 million was set up as Escrow Fund in securing the Mengapur Project. Upon closing of the acquisition, total US$5 million shall applied against the purchase price. In the event that the acquisition does not closed by January 31, 2012, US$4.5 million shall become a loan to Malaco.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
