Moncoa Signs MOU to Acquire Damar Property in Malaysia and closes $500,000 Private Placement


    VANCOUVER, April 4 /CNW/ - Moncoa Corporation (TSX-V: MON) ("Moncoa" or
the "Company") is pleased to announce that it has entered into a Memorandum of
Understanding ("MOU") with Avocet Mining PLC ("Avocet"), London U.K., to
acquire a 100% interest in the Damar Prospects ("Damar"), which are continuous
and contiguous for approximately 6 kilometers along the gold trend adjacent to
the Selinsing Gold Mine Project ("Selinsing"), in Pahang State, Malaysia. The
acquisition is subject to Moncoa completing the previously announced
$9.0 million private placement lead by Haywood Securities Inc. (the
"Financing"), closing the Selinsing acquisition, due diligence by all parties
and all regulatory approvals including Moncoa obtaining Foreign Investment
Committee approval from the Malaysian Government.
    Moncoa has previously obtained shareholder approval to proceed with the
acquisition of initially a 51% controlling interest in Selinsing and has an
option to acquire the remaining 49% for cash the terms of which are set out in
the Information Circular mailed to shareholders in October 2006, full details
of which are filed on
    The Damar Prospects are owned by Damar Consolidated Exploration Sdn Bhd,
all of the share capital of which is owned by Avocet. A public report prepared
by Avocet to JORC standards, indicates that the Buffalo Reef prospect within
Damar contains approximately 185,300 ounces of gold at an average grade of
2.3 g/t Au, is open at depth and has the potential to increase significantly.
    In parallel with entering into the Damar MOU, Moncoa has completed a
non-brokered equity private placement to raise $500,000 gross proceeds to fund
the deposit in respect to the Damar acquisition and attendant costs of
completing the Damar due diligence and a 43-101 report that is presently under
preparation, which will be filed on SEDAR in due course. The placement was for
units at a price of $0.50 comprised of one fully-paid common share, and
one-half of one common share purchase warrant per unit, each whole warrant
exercisable for up to two years at an exercise price of $0.65 for each full
share purchased, all prices are after giving effect to completion of a 1 for 2
share consolidation.
    To complete the 100% acquisition of Damar concurrently with the closing
of the Selinsing acquisition, Moncoa is required to pay $1,750,000 in cash,
issue 12,000,000 fully-paid Moncoa common shares and up to 6,000,000 warrants
having the same terms as the units issued on the Haywood Financing, as
disclosed in Moncoa's news release of February 20, 2007, sufficient to allow
Avocet to become, but not exceed a 19.99% shareholding in Moncoa. The
transaction will be split into two parts. Initially Moncoa will acquire a 51%
interest in Damar for $1,750,000 in cash and 6,000,000 fully paid Moncoa
treasury shares, plus 3,000,000 share purchase warrants, with an obligation to
acquire the remaining 49% interest within 12 months for an additional issue of
6,000,000 shares and up to a further 3,000,000 warrants to enable Avocet to
maintain its fully diluted 19.99 % interest.
    An additional condition of the acquisition is that Moncoa will fund a
$400,000 exploration program on the Damar Prospects over two years. Avocet
will not contribute financially to the exploration program. Avocet will
benefit in any exploration success to the extent of receiving US$12.0 per
ounce of gold discovered on their notional 49% of the ounces discovered until
settlement of the 49% interest, for the first two year period post closing.
The Damar Acquisition is subject to regulatory approval
    The Company previously announced it had retained Snowden Mining Industry
Consultants to prepare a three part study of the Selinsing project, which has
now been completed and received from Snowden. The first two phases including a
confirmation drilling program report have previously been filed on SEDAR. The
final phase of the report confirms an indicated mineral reserve of
4.82 million tonnes grading 1.49 gpt at a cut-off grade of 0.59 gpt for
230,000 ounces Au. At the same Au block cut-off, the report also states an
inferred resource containing 10.32 million tonnes at 1.17 gpt for 388,000
ounces Au. The full report has now been filed on SEDAR.

    The TSX Venture Exchange has in no way passed upon the merits of the
    proposed transaction and has neither approved nor disapproved the
    contents of this news release.

    The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of the information contained herein. Certain disclosures in this
release, including management's assessment of the Company's plans and
projects, constitute forward-looking statements that are subject to numerous
risks, uncertainties and other factors relating to the Company's operation as
a mineral exploration company that may cause future results to differ
materially from those expressed or implied in such forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking
statements. The Company expressly disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of new
information, future events or otherwise.

    %SEDAR: 00008911E

For further information:

For further information: Robert F. Baldock, Chairman and CEO, Moncoa
Corporation, Suite 900, 1125 Howe Street, Vancouver, B.C., Canada, V6Z 2K8

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