M&A

Monument to sell Mengapur to Fortress

Canada-based producer Monument Mining said it would focus on its gold portfolio as it announced a US$30 million deal to sell its base metals project in Malaysia to Singapore-listed producer Fortress Minerals.

Staff reporter
 Monument Mining is selling its Mengapur project in Malaysia to Fortress Minerals

Monument Mining is selling its Mengapur project in Malaysia to Fortress Minerals

Monument said it had entered a definitive purchase and sale agreement with Fortress over its subsidiary which owned the Mengapur copper and iron project.

Fortress said it believed the Mengapur acquisition would bolster the company's objective to become a significant regional player in the iron ore industry and would increase its total magnetite resource from 7.18 million tons to 17.93Mt.

It had yesterday announced a 151% year-on-year jump in revenue to $10.3 million for the quarter to November 30, based on sales of 93,246 dry metric tons of iron ore concentrate.

Under the Mengapur transaction, which is subject to approvals, Fortress would pay $30 million in cash and grant Monument a royalty of 1.25% of gross revenue on all products produced at the project.

"This is a part of our corporate restructuring that will spin off the base metal project and allow us to focus on the development of our gold portfolios in both Malaysia and Western Australia," Monument president and CEO Cathy Zhai said.

The company operates the Selinsing gold mine in Malaysia and has the Burnakura, Gabanintha and Tuckanarra projects in Western Australia.

It has a free-carried 20% interest in Tuckanarra after closing a joint venture agreement in late December with Odyssey Gold, which expects to relist on the ASX early this year.

Fortress shares (SGX: OAJ) reached a one-year high of S33c intraday, putting its value above S$162 million (US$121 million).

Monument shares (TSXV: MMY) also hit a one-year high yesterday, of C14c before closing up 33.3% to 12c, capitalising it at $39.5 million (US$31 million).

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.