Monument Mining Limited (TSX VENTURE:MMY)(FRANKFURT:D7Q1) ("Monument" or the "Company") reports that it has agreed to enter into an Exclusive Option Agreement to acquire a 51% Matala project interest from Panex Resources Inc. ("Panex"), a public listed company that acquired control of the project under a farm-in agreement with Afrimines SARL, the owner of Matala.
Monument was interested in Matala since early 2016, however announced in May it would not proceed with the previously intended transaction. Panex has recently commenced exploration program at Matala. The Option arrangement will allow the Company to further evaluate the drilling and exploration results at Matala in particular without large commitment. The DRC is host to world-class gold and copper mines with a low cost production profile.
President Robert Baldock commented, "This move is in line with the Company's growth and diversification strategy of building a pipeline of operating projects in different regions to have several operational and cash and profit generating areas to diversify risk.
"Panex has specialized in exploration, evaluation and acquisition of mineral properties focusing in Africa with particular focus in the DRC due to the significant gold, copper and other natural resources that have been discovered. This arrangement will enable Monument to obtain an advantage to assess to a number of acquisition opportunities in DRC, where several significant listed mining operators have successfully discovered reserves and resources and built both gold and copper projects and have been profitably operating these mining projects over recent years."
Matala Gold Project
Matala is located in the southern portion of the Twangiza-Namoya Gold Belt, South Kivu Province, located within the east-central portion of the Democratic Republic of Congo (DRC). The Project Area comprises 14 exploration titles or 'Permis de Recherche' ("PR") which cover a total area of 196,989 hectares (approx. 1,969.9 km2).
Panex commenced a drilling in September, 2016 at Matala which is ongoing. Previous work including exploration at the Matala gold project is outlined by the Company in its news release date on February 2, 2016 and have been detailed in a NI43-101 Technical Report "Matala Gold Project" by CSA Global, Sedar filed on March 22, 2016 (refer to www.sedar.com).
Terms of Exclusive Option Agreement
The Company will pay a one-time option fee of US$250,000 to Panex upon certain conditions precedent within 10 days of the transaction closing for a 6-month exclusive option (the "Option") to acquire a 51% project interest in Matala from Panex. A finder's fee will be payable, subject to closing. Upon exercise of the option, Monument will acquire a 51% interest in the Matala gold project by issuing 20,000,000 fully paid Monument shares. Both finder's fee and the share issue are subject to board, TSX Venture Exchange and other regulatory approvals.
Under the option arrangement Panex will cover all overheads and complete a drilling program without any cost to Monument, the results of which will be made available to Monument. Monument will not be required to spend any funds or be on the ground to undertake any work. In the meantime Monument will be able to undertake a due diligence update on the project before making any decision to proceed.