Monarch Gold 1-for-6 issue at 45c a shareMonday, March 17, 2008;...

Monarch Gold 1-for-6 issue at 45c a share
Monday, March 17, 2008; Posted: 11:32 PM

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Sydney, Mar 18, 2008 (RWE via COMTEX) -- MARCF | news | PowerRating | PR Charts -- (RWE Australian Business News) Monarch Gold Mining Company Ltd (ASX:MON) will raise up to $13.4m through a 1-for-6 issue of 29.9m shares at 45c each, to support increasing production at the Riverina and Davyhurst Projects and its ongoing exploration program. The rights issue is not underwritten.

The offer will apply to shareholders registered on March 25.

Monarch shares were trading steady at 47c this afternoon.

Chairman Mr Michael Kiernan said the rights issue provided an opportunity for shareholders to further participate in the next stage of development for Monarch, as it ramped up production at Davyhurst and commenced activity at Mount Magnet.

"Monarch will take possession of Mount Magnet in April, and have in place an immediate exploration program across the tenement package to establish priority targets within the known areas of mineralisation," Mr Kiernan said.

He added Monarch had been through a tough time in developing its operations and expected to be cashflow positive from Davyhurst in April.

"With no bank debt, a strengthening gold price and unhedged production, Monarch is well-placed to deliver value for shareholders.

"The company has also been actively developing its Kalgoorlie gold projects and ramping up production at Davyhurst with a revised mine plan to increase production and drive down costs."