Melior Enters into Standstill Agreement with Its Senior Lender
NEWS RELEASE
MELIOR ENTERS INTO STANDSTILL AGREEMENT WITH ITS SENIOR LENDER
Toronto, Ontario, September 13, 2019 – Melior Resources Inc. (TSXV: “MLR”) (“Melior” or the “Company”)
refers to its press release of September 9, 2019 regarding the appointment of voluntary administrator s to the
Company’s wholly-owned subsidiaries, Melior Australia Pty Ltd (“ Melior Australia ”) and Goondicum
Resources Pty Ltd (“Goondicum” and, together with Melior Australia, the “Subsidiaries”). As a consequence of
the appointment of the voluntary administrator s to the Subsidiaries, the Company and its Subsidiaries have
received a notice of default and demand (the “ Default Notice”) from their senior lender (the “Senior Lender”)
under the loan agreement dated August 9, 2018, as amended (the “Loan Agreement”).
The Company announces that it has entered into a standstill agreement with the Senior Lender (the “Standstill
Agreement”) pursuant to which the Senior Lender has agreed ( on certain terms and conditions ) not to proceed
with enforcement actions against Melior (excluding the Subsidiaries) for a period until October 31, 2019.
Under the Default Notice, the Senior Lender has demanded that Melior and its Subsidiaries make payment to it in
the amount of US$22,714,700, representing the amount outstanding under the Loan Agreement as at September
9, 2019, together with related interest, costs and charges, on or before 4:00 p.m. Australian Western Standard Time
on September 13, 2019. As of this date, Melior and its Subsidiaries do not have sufficient cash resources to meet
such a demand for payment.
Melior is currently considering all options available to it in these circumstances in the interests of all Melior
stakeholders. Additional information will be provided to the market by Melior as necessary.
About Melior
Melior’s Subsidiaries are the owners and past operators of the Goondicum ilmenite and apatite mine located in
Queensland, Australia. Further details on Melior and the Goondicum mine can be found at
www.meliorresources.com and regulatory filings are available on SEDAR. As detailed in the press release of
September 9, 2019, voluntary administrator s have been appointed to the Subsidiaries in Australia pursuant to
Section 436A of the Corporations Act 2001 (Australia).
Melior is incorporated under the provisions of the Business Corporations Act (British Columbia) and has a
registered office in Vancouver, British Columbia . Melior is now classified as a Tier 2 Mining Issuer under the
policies of the TSX Venture Exchange.
Forward Looking Statements Disclaimer
This press release contains forward -looking information within the meaning of applicable securities laws that
reflects the current expec tations of management of Melior. The words “may”, “would”, “could”, “should”,
“will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “aim”, “endeavour”, “project”,
“continue”, “predict”, “potential”, or the negative of these terms or other similar expressions have been used to
identify these forward-looking statements. Forward-looking statements are based upon a number of assumptions
and are subject to a number of known and unknown risks and uncertainties, many of which are beyond
management’s control, and that could cause actual results to differ materially from those that are disclosed in or
implied by such forward -looking statements. There can be no assurance that forward- looking information will
prove to be accurate, as actual results and future events could differ materially from those expected or estimated
in such statements. Accordingly, readers should not place undue reliance on forward- looking information. In
addition, no assurance can be provided regarding the outcome of the voluntary administration process referred
to above or future enforcement proceedings relating to the Loan Agreement.
Additional risks and uncertainties regarding Melior are described in its publicly available disclosure documents,
as filed by Melior on SEDAR (www.sedar.com) except as updated herein.
This forward -looking information represents management’s views as of the date of this press release. While
subsequent events and developments may cause such views to change, Melior does not intend to update this
forward-looking information, except as required by applicable securities laws.
For further information please contact:
MELIOR RESOURCES INC.
Martyn Buttenshaw
Interim Chief Executive Officer
+41 41 560 9070
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.