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AMSTERDAM, The Netherlands,
Feb. 10, 2017 /CNW/ - Meridian Mining
S.E. (TSX V: MNO) ("Meridian" or the "Company"), today announced
that it has entered into an agreement with Paradigm Capital Inc.
(the "Agent") under which the Agent has agreed to act as agent in
connection with a best efforts private placement offering (the
"Private Placement") of units (the "Units") of the Company at a
price of C$0.70 per Unit (the "Issue
Price") for aggregate proceeds of up to C$9
million. Each Unit will be comprised of one common share of
the Company (a "Share") and one half of one common share purchase
warrant (each whole warrant a "Warrant"). Each Warrant will be
exercisable for one Share for 24 months at a price to be determined
in the context of the market.
The Agent has also been granted an option to increase the size
of the Private Placement by up to 15% of the base offering size,
which option shall be exercisable until two business days prior the
closing date.
The net proceeds from the Private Placement will be used to fund
exploration and development activities at the Company's BMC project
and recently acquired Bom Futuro project in northwestern
Brazil, including financing the
construction of a 69kV power transmission line at Bom Futuro which
is required under the Investment Agreement relating to Bom Futuro
following the completion of the Company's technical audit and due
diligence. Certain proceeds may also be used for general
corporate purposes.
The Agent will receive a cash commission on the sale of the
Units equal to 7% of the aggregate gross proceeds of the Units sold
by the Agent as well as that number of compensation options (the
"Compensation Options") equal to 7% of the number of Units placed
by the Agent. Each Compensation Option will be exercisable for one
common share of the Company for 24 months at the Issue Price.
The Units will be offered for sale in all the provinces of
Canada to qualified purchasers,
and in such other jurisdictions as may be determined between the
Company and the Agent. This Private Placement is subject to certain
conditions including regulatory approvals and specifically, the
approval of the TSX Venture Exchange.
On behalf of the Board of Directors of
Meridian Mining S.E.
"Anthony Julien"
Anthony Julien
President, CEO and Director
ABOUT MERIDIAN
Meridian Mining S.E. is focused on acquisition, exploration,
development and mining activities in Brazil. The Company is currently focused on
exploring and developing the BMC manganese project, the Bom Futuro
tin JV area, and adjacent areas in the state of Rondônia. The
Company employs a two-pronged strategy with the objective of
growing pilot production while advancing a parallel multi-commodity
regional exploration program. Meridian is currently producing high
grade manganese at its project located at Espigão de Oeste.
Further information can be found at www.meridianmining.co.
FORWARD-LOOKING STATEMENTS
Some statements in this
news release 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 and development of its properties
and potential mineralization. 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 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 and
development 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 has been established. In particular, because the Company's
production decision relating to BMC's manganese project is not
based upon a feasibility study of mineral reserves, the economic
and technical viability of the BMC manganese project has not been
established.
The TSX Venture Exchange has in no way passed upon the merits of
the proposed Private Placement and 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.
SOURCE Meridian Mining S.E.