Prime Meridian to Acquire 55% Interest in India Based Industrial Mineral Processor Hallmark Minerals (L) Pvt Ltd
November 12, 2014 News Release TSX-V Symbol: PMR
PRIME MERIDIAN TO ACQUIRE 55% INTEREST IN INDIA BASED INDUSTRIAL MINERAL PROCESSOR HALLMARK MINERALS (l) PVT LTD
Vancouver, B.C.: Prime Meridian Resources Corp. (“Prime” or the “Company”) (TSX-V Symbol: PMR) is pleased to announce that in continuance of the Company’s strategic plan to build a globally integrated proppants company, it has entered into two binding letters of intent to acquire a 55% interest (fully diluted) in Hallmark Minerals (l) Pvt. Ltd. (“Hallmark”). The first LOI allows Prime to acquire an immediate 10% percent interest (fully diluted 5%) in Hallmark for a one-time payment of CDN $500,000. The second LOI allows Prime to acquire an additional 50% interest in Hallmark by either expanding the production capacity of Hallmark by an additional 25,000 tonnes per year or completing maximum capital expenditures of CDN $7 million. The transactions are subject to TSX Venture Exchange acceptance.
About Hallmark
Hallmark is located outside Pune, India about 200 km southeast of Mumbai. The company has successfully patented, developed, produced and sold ceramic proppants in India. The current plant can produce 10,000 tonnes a year of high-quality, industry standard ceramic proppants including lightweight, intermediate strength and high strength. Hallmark has expansion plans in place to increase current plant capacity by 25,000 tonnes.
“Through the addition of Hallmark’s current intellectual property, operating plant capacity and experienced personnel, this partnership is a major step in developing our Company’s global strategy of integrating the elements of the proppant value chain within a regional focus on which type of proppant best serves the needs of each region.” stated CEO Brian Leeners.
Financing
The Company further announces a non-brokered private placement of up to 20.0 million units at a price of twenty-five cents per unit ($0.25) to raise proceeds of up to $5,000,000. Each unit consists of one common share and one common share purchase warrant (the "Unit Warrants") with each Unit Warrant entitling the holder to acquire one additional common share at a price of 50 cents ($0.50) per share for one year from closing. The Unit Warrants are subject to the right of the Company to accelerate the exercise period for the Unit Warrants if the common shares of the Company trade above 75 cents ($0.75) for a period of 10 consecutive trading days. The proceeds of the private placement will be allocated toward general working capital purposes.
The Company may pay commission and or finders' fees on the private placement proceeds to certain parties in accordance with the policies of and subject to the approval of the TSX Venture Exchange.
On behalf of the Board of Directors of Prime Meridian Resources Corp.
"Brian Leeners"
Brian Leeners, CEO & Director
For further information, please refer to our website www.primemeridianres.com or contact:
Prime Meridian Resources Corp.
TEL: 604-893-8384 [email protected]
OR
Michael Dehn, President & Director TEL: 647-477-2382 [email protected]
Neither the 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.