Funds to advance its Brazilian copper-gold
portfolio
LONDON, Dec. 21, 2020 /CNW/ - Meridian Mining SE
(TSXV: MNO) ("Meridian" or the "Company") is pleased to announce
that it has closed and increased its previously announced
non-brokered private placement1 to 21,576,500 units
(the "Units") at a price of $0.20 per Unit, for gross proceeds of
$4,315,300 (the "Placement").
The Units consist of a common share of Meridian (each a "Common
Share") and one-half of one transferable common share purchase
warrant (each a "Warrant"). Each whole Warrant will entitle
the holder to purchase one additional Common Share for a period of
24 months from closing at a price of $0.30.
Proceeds from the Units will be used for advancing Meridian's
Cabaçal camp scale copper gold VMS resource development project,
the Espigão copper gold polymetallic advanced exploration project
and general working capital. All securities issued in connection
with the Placement, including any Common Shares issued upon
exercise of the Warrants, are subject to a restricted resale period
that expires on April 22, 2021.
A finder's fee was paid in connection with the Placement to
finders that include Haywood Securities Inc., and Canaccord Genuity
Corp (collectively the "Finders"), that consisted of cash
fees in the aggregate amount of $84,205, representing an aggregate commission of
5% of the Units sold to investors introduced by Finders. In
addition, a total of 240,950 broker warrants have been issued to
certain Finders. The terms of the broker warrants are identical to
the terms of the Units.
The strong interest from new sophisticated investors, both local
and international, the uptake by many of the existing shareholders
and by Meridian management has meant that the non-brokered
Placement was oversubscribed and subsequently increased in size.
The Company is now well financed to advance its camp scale Cabaçal
Cu-Au VMS project in Mato Grosso,
Brazil.
Certain officers and directors of the Company participated in
the Placement, which constitutes a "related party transaction" for
purposes of Multilateral Instrument 61-101 - Protection of
Minority Security Holders in Special Transactions ("MI
61-101"). Such participation is exempt from the valuation and
minority approval requirements of MI 61-101 by virtue of the fact
that the Company is not listed on a specified market set out in
section 5.5(b) of MI 61-101 and the value of Units subscribed for
by such officers and directors is less than $2,500,000 in accordance with the requirements of
section 5.7(b) of MI 61-101.
The Company would like to also announce that its Director Mr.
Gilbert Clark has taken up an
Executive Director role within the Company. Since the completion of
the July 15, 2020 capital raise and
with the acquisition of the district scale Cabaçal Copper-Gold VMS
project Meridian's corporate requirements have increased and Mr.
Clark will focus on the Corporate Development of the Company as
Chair of the Corporate Development and Technical Committees. The
appointment of Mr. Gilbert Clark in
this executive role enhances the depth of experience in the
Corporate Management team.
Dr McArthur, CEO & President, states, "The success of this
$4.3M oversubscribed capital raising
matches ours and also that of the capital market's confidence in
the potential of the Cabaçal copper-gold VMS project. In the new
year, we will be launching an aggressive resource delineation
program via verification, and extensional drilling targeting the
historical Cabaçal Au-Cu mineralisation which was previously
defined by over 400 DDHs. The program will target the extensive
undeveloped stacked lenses copper-gold mineralization, and known
extensions to the high-grade trends at depth, to evaluate open-pit
and underground development scenarios. The project also offers a
series of exciting near-mine exploration targets defined by modern
VTEM aerial geophysical surveys, supplemented by historical
geochemical data. We welcome new investors and appreciate the
ongoing support of our exiting investors in this latest successful
capital raising. We also welcome Mr. Gilbert Clark to the executive management role,
who brings a depth of experience in mining, capital markets and
project evaluation, to the Corporate Management team. Meridian is
now a well funded company poise to start the resource development
program at the Cabaçal."
1 See Meridian news releases: November 27th, 2020
On behalf of the Board of Directors of Meridian Mining SE
Dr Adrian McArthur
CEO, President and Director
Ph: +1 778-715-6410 (PST)
Email: info@meridianmining.co
ABOUT MERIDIAN
Meridian Mining SE is focused on the acquisition, exploration,
development and mining activities in Brazil. The Company is currently focused on
exploring and developing the camp scale Cabaçal copper-gold VMS
project in the state of Mato
Grosso, the Espigão copper-gold polymetallic project, and
the Mirante da Serra manganese project in the state of Rondônia,
Brazil.
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Further information can be found at www.meridianmining.co.
FORWARD-LOOKING STATEMENTS
Some statements in this presentation contain forward-looking
information or forward-looking statements for the purposes of
applicable securities laws. These statements include, among
others, statements with respect to the Company's plans for
exploration, development and exploitation of its properties and
potential mineralisation. These statements address future
events and conditions and, as such, involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the statements. Such risk factors include, among others,
failure to obtain regulatory approvals, failure to complete
anticipated transactions, the timing and success of future
exploration and development activities, exploration and development
risks, title matters, inability to obtain any required third party
consents, operating risks and hazards, metal prices, political and
economic factors, competitive factors, general economic conditions,
relationships with strategic partners, governmental regulation and
supervision, seasonality, technological change, industry practices
and one-time events. In making the forward-looking
statements, the Company has applied several material assumptions
including, but not limited to, the assumptions that: (1) the
proposed exploration, development and exploitation of mineral
projects will proceed as planned; (2) market fundamentals will
result in sustained metals and minerals prices and (3) any
additional financing needed will be available on reasonable
terms. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise
except as otherwise required by applicable securities
legislation.
The Company cautions that it has not completed any feasibility
studies on any of its mineral properties, and no mineral reserve
estimate or mineral resource estimate has been established.
In particular, because the Company's production decision relating
to Meridian Mineração Jaburi S.A, manganese project is not based
upon a feasibility study of mineral reserves, the economic and
technical viability of the Espigão manganese project has not been
established
The TSX Venture Exchange has neither approved nor disapproved
the contents of this news release. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE U.S.
SOURCE Meridian Mining S.E.
