Merc Completes $7 Million Private Placement of Secured Notes with Participation from Osisko
18 January 2012 - 8:06PM
PR Newswire (Canada)
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES/ www.mercinternational.ca TORONTO, Jan. 20, 2012 /CNW/ -
Merc International Minerals Inc. ("Merc") is pleased to announce
that it has completed an offering of secured notes ("Notes") for an
aggregate principal amount of $7 million (the "Offering"). Among
others, Osisko Mining Corporation and Northfield Capital
Corporation participated in the Offering. The net proceeds from the
sale of the Notes will be used by Merc (i) to post letters of
credit ("LC") totalling $5 million in favour of Aboriginal Affairs
and Northern Development Canada to secure Merc's obligation spend
up to $5 million to reclaim three sites in the Northwest
Territories (the "Sites") following the closing by Merc of the
acquisition of the mineral claims and leases comprising the Colomac
Mine (the "Acquisition") as disclosed in Merc's press release dated
December 15, 2011; and (ii) for general working capital purposes.
Upon completion of the reclamation work in accordance with
reclamation plans for the Sites, or Merc completing reclamation
work having a value of at least $5 million, Merc is entitled to the
return of the LC's posted as security. David Wiley, CEO of Merc,
commented, "Securing the Notes is a major step towards closing the
acquisition of Colomac. We wish to express our appreciation to the
Note holders for their support and we look forward to closing the
Acquisition in the near future." The Notes pay interest at a rate
of 12% per annum, compounded monthly, are payable in cash at
maturity on July 20, 2013, and are secured by a general security
agreement on the real and personal property of Merc. Merc may
prepay the Notes without penalty, provided that any interest owed
to the date of prepayment is also paid to the Note holders. An
insider of Merc purchased $2 million of the Notes. In connection
with the issuance of the Notes, the Note holders will be issued an
aggregate of 3 million Merc warrants (the "Warrants") conditional
upon the closing of the Acquisition on or prior to February 18,
2012. If the closing of the Acquisition does not occur prior to
February 18, 2012 the funds received from the offering will be
returned to the investors and Merc will not issue the Warrants.
Each Warrant will entitle the holder to acquire one additional
common share at an exercise price of $0.35 per share until July 20,
2013. The securities issued pursuant to the secured note offering
are subject to a hold period expiring on May 21, 2012. In
connection with the secured note offering, Merc paid finders' fees
of $225,000. About Merc International Minerals Inc. Merc is a
Canadian-based exploration company focused on acquiring and
developing gold mineral properties in the Northwest Territories.
Its primary land position covers approximately 242,000 acres in the
Indin Lake Gold Camp, located approximately 200 kilometres north of
Yellowknife, Northwest Territories. 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. Forward-Looking
Statements This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
information with respect to Merc's financings, the completion of
the Acquisition, the return of the LC funds and the use of
proceeds. Generally, forward-looking information can be identified
by the use of forward-looking terminology such as "plans",
"expects", or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"does not anticipate", or "believes" or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might", or "will be taken", "occur", or "be
achieved". Forward-looking information is based on the opinions and
estimates of management at the date the information is made, and is
based on a number of assumptions and is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Merc to be materially different from those expressed or implied by
such forward-looking information, including risks associated with
the exploration, development and mining such as economic factors as
they effect exploration, future commodity prices, changes in
foreign exchange and interest rates, actual results of current
exploration activities, government regulation, political or
economic developments, environmental risks, permitting timelines,
capital expenditures, operating or technical difficulties in
connection with development activities, employee relations, the
speculative nature of gold exploration and development, including
the risks of diminishing quantities of grades of reserves, contests
over title to properties, and changes in project parameters as
plans continue to be refined as well as those risk factors
discussed in Merc's management discussion and analysis for the year
ended July 31, 2011, available on www.sedar.com. Although
Merc has attempted to identify important factors that could cause
actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not
place undue reliance on forward-looking information. Merc does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws. Merc International
Minerals Inc. CONTACT: David Wiley, President and CEO Daniel Boase,
InvestorRelationsMerc International Minerals Inc. First Canadian
CapitalCorp.(647) 260-1247 (416) 742-5600 ext 232 (416) 363-4567
(FAX) Email:dboase@firstcanadiancapital.comEmail:
dwiley@mercinternational.ca
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