i sent the company an e-mail today, checking if trial plant has recommenced..
23 December 2005 ASX ANNOUNCEMENT COUNTDOWN TO PRODUCTION…… SENTIENT PROVIDES MAJOR BOOST TOWARDS COMPLETING FUNDING FOR THE GOONDICUM INDUSTRIAL MINERALS PROJECT Leading international minerals resources investor, The Sentient Group (Sentient), proposes to take a key stake in Monto Minerals Limited’s (Monto) Goondicum Industrial Minerals Project in central Queensland. Announcing a Heads of Agreement (HoA) with Sentient today, Monto Executive Chairman Mr Peter Slaughter said: “We are delighted to have such a significant cornerstone investor in the Goondicum project which is now ready for development. Sentient’s decision constitutes a major part of the financing now being finalised for the project. This is an important day for Monto shareholders and other stakeholders in our Project at Mount Goondicum.” Monto plans to produce high quality feldspar, ilmenite and apatite from the Goondicum deposit using simple mining techniques and proven mineral sands processing technology. A feasibility study has established the project’s robust economics, with proposed production being progressively contracted for sale, including 50% of the first year’s planned output and a similar tonnage for year two. Advanced discussions with two other customers could increase offtake commitments beyond 60% of the first two years’ production. Under the HoA, which is conditional on other components of the financial arrangements for the project being concluded in the United Kingdom and Australia, Sentient will provide a $7.8 million investment package comprising: �� a $1.8 million placement of Monto shares at 3 cents per share and �� a $6 million direct investment in the Goondicum project subject to further due diligence on the project by Sentient and other conditions precedent. The $1.8 million will fund the production of additional titano-magnetite (a potential new high-margin product for use in coal washing) and feldspar bulk samples for commercial testing, early engineering design work for the water pipeline, and road works as well as additional working capital. Mr Slaughter emphasised the considerable value that the Sentient investment will add to Monto and the Goondicum project. Website: www.montominerals.com
2 “Sentient has well recognised expertise in funding mineral projects throughout the world and a reputation for involvement in successful developments. We expect that Sentient will actively apply the Group’s expertise during the development process and operating phase. We are confident that Sentient, with a 12.3% shareholding in Monto and 10% investment in the project, will add significantly to the value of the project and make a major contribution to its successful completion,” Mr Slaughter said. As part of the arrangement, Sentient has the right to appoint a director to the Board of Monto. The HoA includes an option for Sentient to sell back its interest to Monto within four years of the agreement, and gives Monto first right of refusal should Sentient wish to sell its interest to a third party. About Monto: Monto Minerals Limited is an emerging producer of industrial minerals with substantial in-ground resources in Queensland. The company plans to supply international and Australian markets with feldspar for use in glass making, paint manufacture and as an industrial abrasive, ilmenite for manufacturing white pigment used in paint, paper and plastics and apatite as a fertiliser. Potential additional, high margin, products are being tested including titano-magnetite for use in coal washing, and ground feldspar for use in the paint and powder coating industries. About Sentient: The Sentient Group is an independent private equity investment firm specialising in the global resources industry. Sentient invests principally in the development of natural resource based projects. The Fund’s sponsors are CDP Capital, Babcock & Brown and HypoVereinsbank. The Fund’s investors range from government pension plans, corporate pension funds, institutional investors and industry participants. The global spread of investors from the USA, Canada, Germany and Australia complements its global mandate. By Order of the Board GEOFFREY P MOORE Chief Executive Officer
MOO Price at posting:
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