Meridian Raises $4.3M - oversubscribed private placement completed Funds to advance its Brazilian copper-gold portfolio
Meridian Raises $4.3M - oversubscribed
private placement completed
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 placement
1
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 27
th
, 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:
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
.
Stay up to date by subscribing for news alerts here:
https://meridianmining.co/subscribe/
Follow Meridian on twitter:
https://twitter.com/MeridianMining
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.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/December2020/21/c4635.html
%SEDAR: 00040264E
For further information:
Dr Adrian McArthur, CEO, President and Director, Ph: +1 778-715-6410
(PST), Email: [email protected]
CO: Meridian Mining S.E.
CNW 16:30e 21-DEC-20