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Monto Minerals Ltd - Funding Update

RNS Number : 7377W Monto Minerals Ltd 16 June 2008 Monto Minerals Limited (the 'Company') Funding Update On 12 June 2008, trading in the Company's ordinary shares ('Shares') was suspended on AIM and halted on the ASX at the request of the Company pending the outcome of discussions regarding the Company's working capital requirements. The Company resolved at that time to provide the market with a further update in respect of its funding position before 7.30 a.m. (BST) on Monday 16 June 2008. The Company today announces that it has been successful in obtaining commitments to raise approximately A$5 million (the 'Placing') via the issue of 48,075,000 new Shares to existing major institutional investors ('Placees') at a price of 5 pence per Share for UK institutions and 10.35 cents for Australian institutions (the 'Placing Price'). The Directors consider that the Placing proceeds are sufficient to enable the Company to continue to operate the Goondicum Industrial Minerals Project (the 'Project') at current production levels for a period of not less than three months. During this time the Company believes it will be in a position to better understand the issues which have caused the slower than expected ramp up in production at the Project and the viability of the Company's longer term expansion plans. If an expansion of the Project is deemed viable, the Company will require further funding to pursue the expansion. The Board announces that Mr Mike Christie has been appointed as Chief Executive Officer, with immediate effect for an initial period of three months. Mr Christie will have executive responsibility for the management of the Project and will report directly to the Board but has not been appointed as an Executive Board member at this time. Mr Christie is a mining industry professional with over thirty years experience both in Australia and overseas. His corporate experience includes senior management roles in a number of mining companies including Mt Lyell, Renison Ltd, RGC, Kidston, Elders Resources, Red Dome Gold Mine and Niugini Mining. For the past ten years, Mr Christie has provided consulting services within the mining industry, specializing in organisation optimisation. Mr Geoff Moore's retirement from the Company has previously been announced and is effective immediately. As a result of the clarification of the Company's funding position, the London Stock Exchange has consented to the lifting of the suspension of the trading of the Company's Shares on AIM with immediate effect. As of 10:00 a.m. Brisbane time today, trading in the Company's Shares on the ASX has also been resumed. Under the terms of commitments entered into between the Company and Placees, in the event that a subsequent equity placing ('Secondary Placing') is undertaken by the Company within the next 12 months whereby new Shares are to be issued at a price lower than the Placing Price, Placees are, subject to shareholder approval, to be entitled to subscribe for such number of new Shares at a nominal value so as to ensure that the Placees are not disadvantaged by the Secondary Placing and to equalise the Placing Price and the price at which shares are to be issued in the Secondary Placing. These measures will only apply to a Secondary Placing where funds are raised to fund remedial action and expansion of the Company's Goondicum Plant. The Placing remains subject to receipt of formal binding documentation from each of the Placees in a form satisfactory to the Board of the Company and Placees. The Company expects that a Notice of General Meeting and Explanatory Statement will be sent to shareholders in the next two weeks to seek approval for the anti-dilution arrangements associated with the Placing and to renew the Company's authority to issue new Shares in accordance with the ASX listing Rules. Enquiries: Peter Slaughter, Non-executive Chairman - +61 411 228 206 Peter Freeman, Non-Executive Director - +44 (0) 20 7349 5250 Richard Chase, Richard Greenfield, Ambrian Partners Limited - +44 (0) 20 7634 4700 This information is provided by RNS The company news service from the London Stock Exchange END MSCFKPKPKBKBCAD

Quick facts: Montero Mining and Exploration Ltd

Price: 0.035

Market: TSX-V
Market Cap: $765.83 k
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