/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
AMSTERDAM, The Netherlands,
May 16, 2017 /CNW/ - Meridian
Mining S.E. (TSX V: MNO) ("Meridian" or the
"Company"), is pleased to announce it has closed its
previously announced private placement of units (the
"Units") of the Company (the "Private
Placement"). The Company issued in aggregate a total of
12,734,500 Units at a price of $0.40
per Unit for gross proceeds of $5,093,800, more than the 11,250,000 Units
($4,500,000) originally contemplated
in the release dated April 28, 2017.
Each Unit consisted of one common share of the Company (a
"Share") and one common share purchase warrant (each whole
warrant a "Warrant"). Each Warrant entitles the holder
thereof to acquire one Share of the Company at an exercise price of
$0.65 for a period of 24 months from
closing.
Management and insiders subscribed for 10,334,000 Units for
$4,133,600 in total proceeds to the
Company.
The Company has agreed to pay commissions on the sale of certain
Units in accordance with the policies of the TSX Venture
Exchange. The Company agreed to pay Paradigm Capital Inc.
("Paradigm") a finder's fee equal to 6% of the aggregate
gross proceeds from the Units sold to purchasers introduced by
Paradigm as well as that number of compensation options (the
"Compensation Options") equal to 6% of the number of Units
acquired by such purchasers. Each Compensation Option is
exercisable for one unit of the Company at an exercise price of
$0.40 for a period of 24 months from
closing. Each unit contains a warrant which has terms
consistent with the private placement warrant. With respect to a
portion of the funds raised in the Private Placement, the Company
paid finders' fees of $24,000 and
issued 60,000 Compensation Options to Paradigm. In addition,
the Company paid finders' fees equal to 5% of the aggregate gross
proceeds from the Units sold to purchasers introduced by
William Pfaffenberger and
Jeffrey Patrick; accordingly, the
Company paid finders' fees of $3,200.
All securities issued pursuant to the Private Placement and as
finders' fees will be subject to a four‑month hold period expiring
on September 17, 2017.
The net proceeds from the Private Placement will be used
alongside cash flow being generated by the Company's Jaburi
manganese project (formally BMC) and existing credit facilities to
fund exploration and development activities both there and at the
recently acquired Bom Futuro tin project in northwestern
Brazil. Certain proceeds may also be used for general
corporate purposes.
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 the acquisition, exploration,
development and mining activities in Brazil. The Company is currently focused on
exploring and developing the Jaburi manganese and gold projects,
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 Jaburi's manganese project is not
based upon a feasibility study of mineral reserves, the economic
and technical viability of the Jaburi 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.