LONDON, Dec. 11, 2017 /CNW/ - Meridian Mining SE (TSX
V: MNO) ("Meridian " or the "Company") today announced it has
increased the loan facility from Sentient Global Resources Funds IV
LP by US$1,000,000. The proceeds from
the loan will be used to for the Jaburi plant expansion and working
capital on Meridian's Manganese Project in Espigão do Oeste,
Rondônia.
"The increase in the loan facility gives the Company the working
capital to increase our exports of manganese and is for the final
payment on the Jaburi plant upgrade," said Anthony Julien, President and CEO of Meridian.
"Our customers are demanding more product and the Jaburi plant
upgrade will allow the Company to expand production capacity up to
100,000 tonnes per annum."
Sentient Equity Partners has agreed to increase the non-arm's
length loan facility by US$1,000,000
to US$8,500,000. All other terms
remain the same. The loan bears interest at a rate of 10% per annum
and matures on April 30, 2018.
The amendment of the loan facility constitutes a "related party
transaction" for purposes of Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special Transactions
("MI 61-101"). The transaction is exempt from the valuation
and minority approval requirements of MI 61-101 in accordance with
sections 5.5(a) and 5.7(a), respectively, by virtue of the fact
that the value of the loan is less than 25% of the Company's market
capitalization.
On behalf of the Board of Directors of
Meridian Mining SE
"Anthony Julien"
Anthony Julien
President, CEO and Director
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 Espigão 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 do 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 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.
SOURCE Meridian Mining S.E.
