This is when Baldock thought he was a "big time mining excecutive".... all part of the Great Mengapur Giveaway ....
The question is....... Can anyone really figure this deal out???? ..........Richard
Monument Signs Binding Oxide Magnetite Purchase and Profit-Sharing Agreement
Vancouver, B.C., January 29, 2014, Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) (“Monument” or the “Company”) today announced that it has entered into a binding Oxide Magnetite Purchase and Profit-Sharing Agreement (the “Agreement”) for the acquisition of certain overburden top soils on the Mengapur Project and the production of magnetite from these soils.
“This is an excellent transaction for Monument and its shareholders. We expect this transaction to allow us to begin producing magnetite from stockpiled and surface top soils on the Mengapur Project in the near-term with a relatively small investment in processing facilities,” said Robert F. Baldock, Monument’s President and CEO. “This acquisition will enable Monument to turn overburden costs into a potentially profitable operation and potentially add significant value to the Mengapur Project for the benefit of all shareholders and potential investors. The removal of stockpiled material and overburden would represent a large portion of upfront mine development and operation costs on the Mengapur Project, as the overburden would need to be removed before hard rock open pit material could be accessed for mining.”
The Agreement is with the closely-held Malaysian mining company, Malaco Mining Sdn. Bhd., its group of companies and shareholders (collectively, “Malaco”). Malaco is a previous vendor of the Mengapur Project and it currently holds the rights to oxide magnetite material contained in top soil overburden on the Mengapur Project, including Areas A, B and C of the project. Monument, through its wholly owned subsidiary Monument Mengapur Sdn Bhd (“MMSB”) - the exclusive operator of the Mengapur Project - has been managing Malaco’s top soil magnetite operation on Areas A and B since September 2012. Monument is responsible for grade control, a weighbridge operation and other administrative activities on Areas A and B including collecting proceeds and paying royalties to the State Government.
Profit Sharing Plan and Stockpile Acquisition Under the Agreement, Malaco has confirmed MMSB’s previously-granted right to access, extract, process and sell the oxide magnetite materials on the Area C overburden according to MMSB’s mine plan and has agreed on a profit-sharing arrangement for that overburden material.
Under the profit-sharing arrangement Malaco will receive, based on a sliding scale profit sharing arrangement, a share of profit up to US$5.00 per tonne of Area C marketable grade magnetite delivered and sold by MMSB at the near-by Kuantan port. However, no profit-sharing payment will be payable to Malaco on the first US$10.0 million net profits generated from the sales of marketable grade magnetite production from the Area C overburden.
In addition, Malaco has agreed to sell to MMSB approximately 1.2 million tonnes of stockpiled oxide magnetite top soils. This stockpiled material is intended to be used as initial inventory for approximately the first year of magnetite production at the processing plant to be constructed by Monument by Monument, as described below. The stockpiled materials are not subject to any profit-sharing arrangement with Malaco.
The total consideration payable by Monument under the Agreement is the issuance of 25,000,000 Monument common shares at closing. The transaction is scheduled to close when formalities are completed in February 2014 and is subject to all required regulatory approvals and filings.