Monarch contemplates Dubai debut

West Perth-based Monarch Gold Mining Company Ltd is exploring the possibility of listing on the Dubai International Financial Exchange, looking to attract around 15 per cent UAE investment, company chairman Michael Kiernan announced today.

The full text of a company announcement is pasted below

Monarch Gold Mining Company Limited, an Australian gold company listed on the Australian Stock Exchange, is exploring the possibility of listing on the Dubai International Financial Exchange (DIFX).

Michael Kiernan, Monarch's Executive Chairman, and a number of the company's executives and advisors are in talks with the DIFX and investment bankers in Dubai this week.

Global commodities prices have soared in recent years; the increase in precious metals and oil prices has been especially marked. Australia is rich with natural resources, particularly in the mining sectors. Monarch Gold was formed in 2002 by a group of experienced mining executives focused on gold exploration in the relatively unexploited western region of Australia.

The company has grown to become the largest Australian-owned landowner in the mineral rich area of the Kalgoorlie Gold Fields located in Western Australia. Monarch Gold currently has a resource base totalling 2.4 million ounces and two state-of-the-art gold treatment plants.

The possible listing in Dubai is part of a larger trend of foreign companies providing investment opportunities for regional investors.

"Dubai is known as the 'City of Gold' and Monarch is aiming to be a significant provider of gold-related investment opportunity for investors in the region," Mr Kiernan said.

"We are very pleased with what we have seen in Dubai. The DIFX offers clear legal and financial structures that parallel the world's most advanced exchanges, therefore listing here makes perfect sense. We believe Monarch's proposition will be attractive to investors in the region, both individuals and institutions. Although commodities prices are cyclical, our current extraction costs are below the market rate for gold, and investing in gold is an appropriate way to store wealth. Over the next 12 months, Monarch expects to generate A$25 million in after tax profit from mining gold in Australia."

"Our goal is to have approximately 15 per cent of Monarch's shareholders to be based in the UAE region."

Monarch Gold is currently implementing an aggressive expansion strategy in acquiring projects that have promising gold production potential in Western Australia.

Monarch remains firmly on track with its production targets, with mining of gold expected to commence at the Davyhurst project in May, followed by mining at Monarch's Mt Ida project in July 2007.

"We are focussed on meeting our production target and taking Monarch from explorer to producer, with a goal of becoming a 500,000 ounce per annum producer by end of 2009," Mr Kiernan said.

"We are now on the cusp of production at Davyhurst, with the mill to start-up in mid-July with head grade of 5.3g/t Au, and the first gold to be poured in late July. At our recently acquired Mt Ida asset, the first ore is expected to be mined in late July."

"We have a twelve month production target of 125,000 ounces from these two projects."

"An aggressive exploration program is also underway that will add longer term value for shareholders," Mr Kiernan said.