LONDON, Dec. 27, 2017 /CNW/ - Meridian Mining SE (TSX
V: MNO) ("Meridian " or the "Company") today announced it has
extended the US$1-million short-term
loan facility from the Sentient Group Ltd. to April 30, 2018. In addition, the Company's wholly
owned subsidiary, Cancana Resources Corp ("Cancana"), has arranged
a new loan facility of US$1.5
million, which will be used to settle the convertible
debenture in the same amount, which was payable to Sentient Global
Resources Funds IV LP and matured on December 23, 2017.
"The amended and new loan facilities give the Company the
flexibility to focus on the ramp up of the Jaburi plant and to
investigate future financing options," said Anthony Julien, President and CEO of
Meridian.
The Sentient Group Ltd has agreed to extend the US$1-million non-arm's length loan facility to
April 30, 2018. All other terms
remain the same. The loan bears interest at a rate of 10 per cent
per annum and matures on April 30,
2018.
The new Cancana US$1.5 million
loan facility is unsecured, bears interest at a rate of 10% per
annum, matures on April 30, 2018 and
is guaranteed by Meridian.
The amendment of the loan facility and the new 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.