Monument Mining Ltd V.MMY

Residual Biox Financing

[nozzpack]

Based on what has already been done in preparation costs and using recent asset disposal funds ( Turnakura and Mengaoher = $44 million cad ) I figure about $20 million cad would possibly be needed if Murchison is not sold.

As it will take about $30 million or so to take Murchison to operational production, I assume that it will be sold.

Assuming that is not the case, that $20 million cad to fund the residual costs..$20 m cad..of the Biox conversion could be raised by offering shareholders a rights issue.

Lets say rights are offered for each share held and 2 rights are required to purchase one common share at $0.14 cad.

This would raise about $21 cad .million and add about 165 m to our shares o/s, bringing total shares to about 500 million.

This option seems unlikely as if push came to shove, we have sufficient cash and cash equivalents on hand ..about $65 million..along with cash inflows from production, to fully fund the conversion , perhaps with the addition of a $5 million US debenture debt funding..

[romara]

Why not .... just finance the project without diluting the share base ....  Richard

[nozzpack]

Absolutely....equity dilution is not warranted . we have sufficient funds for  capital equipment and its installation( Approx $34.5 million US ) That would require no more than $16- $17 million US for the remainder, as over the past  2-3 years, we have completed some of the preparatory work and the tailings facility has already been expanded. Our collateral including, self funding of