Monarch Gold Mining Company (ASX /DIFX:MON) is pleased to announce the company has finalised and signed the share sale agreement for the purchase of the Mount Magnet Gold Operations which includes the historic Hill 50 gold project and Big Bell gold operations near Mt Magnet. Monarch announced the acquisition of Hill 50 from Harmony Gold Mining in November last year and will take possession on 1 April 2008. The purchase process is due for completion on 30 June 2008. The Hill 50 project represents a significant and strategic acquisition for Monarch, delivering known gold reserves, modern processing facilities and one of the largest landholdings in the Mount Magnet region. Monarch Chairman Michael Kiernan said the company is well advanced on raising capital to complete the share sale agreement. “Despite capital and credit markets changing substantially in recent times, we are confident of raising $35 million to complete the conditions precedents attached to the purchase process,” Mr Kiernan said. The Mt Magnet asset package comprises a resource inventory of 2.7M ounces of gold, tenements covering approximately 1,100 square kilometres, along with a 2.7mtpa capacity plant. Monarch intends to put the Hill 50 mine on care-and-maintenance for up to two years, while it focussed on exploration activities across landholdings. Monarch will launch a substantial drilling program on the landholding to extend the current 2.7 million ounce gold resource base. A budget of $10 million per year for the next two years has been allocated for exploration on the extensive Mt Magnet tenement. “The Monarch Board remains confident 2008 will be a very strong year for an unhedged gold and debt free producer with exposure to the robust gold price. “Monarch shareholders will continue to gain exposure to the largest Australian-controlled landholding in the Kalgoorlie region and a ramp up in production from Monarch’s Davyhurst and Mt Ida assets. For further information, please contact: Michael Kiernan Warrick Hazeldine Chairman - Monarch Gold Purple Communications Tel: 08 9481 6422 Tel: +61 (0)8 9485 1254 Mob: 0417
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