VANCOUVER, June 19, 2012 /CNW/ - Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or the "Company") announces that the Company held a meeting with Phoenix Lake Sdn. Bhd. ("PLSB") to harmonize magnetite iron ore operations at the designated area of the Mengapur Project in Pahang State, Malaysia, in which the Company has a 70% interest except for the free digging oxide magnetite iron ore material covering the skarn.
As result of the meeting, Monument and PLSB have reached an agreement in principle that Monument would be the sole operator of the oxide magnetite iron ore operation and ensure that (1) PLSB will continue to participate in the oxide magnetite iron ore operation as contractor and retain the right to share profits; (2) other metals contained in the mined oxide magnetite iron ore material remain with the owner of the Mengapur Project; and (3) the environment is safeguarded. The agreement will be documented and disclosed when it is duly signed.
PLSB was carrying out the oxide magnetite iron ore operation at a certain designated area of the Mengapur Project pursuant to an Iron Ore Agreement with the previous owner, which was terminated by MMSB, the successor of the Operator of the Mengapur Project. Subsequent to closing of the 70% Mengapur Project acquisition MMSB advised due to PLSB's fundamental breach of the terms of this agreement including, but not limited to, extracting and removing other metals, noncompliance with certain environmental conditions and defaulting on consideration payments in exchanging the exclusive rights, such breach has caused total damages totalling an estimated $312 million during a twelve month period up until January 2012 to CASB, the owner of the mining lease, and potentially to Pahang State of Malaysia as a royalty recipient. Similar losses would have continued if PLSB were allowed to operate at the Mengapur property without a change in operating procedure. In response, PLSB filed legal claim against the Company and two of its subsidiaries, Cermat Aman Sdn. Bhd. ("CASB") and Monument Mengapur Sdn. Bhd. ("MMSB") for damages over $130 million.
The above meeting was called immediately to reconcile the dispute. Both parties have agreed to act in good faith in harmonizing the oxide magnetite iron ore operation for the best interest of both stakeholders, all major terms of an agreement have been reached and all legal claims will be dropped immediately after the agreement is duly signed as quick as possible.
Robert F. Baldock, President and CEO
Monument Mining Limited
Suite 910- 688 West Hastings Street
Vancouver B.C. Canada V6B 1P1
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This news release contains forward-looking statements about Monument Mining Limited ("Monument"), its business and future plans. Forward-looking statements are statements that are not historical facts and include the timing of the proposed programs and events. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause actual results or achievements to differ materially from those expressed or implied by the forward-looking statements. These risks and certain other factors include, without limitation, the estimated cash cost per ounce of gold production and the estimated cash flows which may be generated from the operations, general economic factors and other factors that may be beyond the control of Monument; statements regarding the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; foreign operations risks; other risks inherent in the mining industry and other risks described in the annual information form of the Company, which is available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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