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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.
President, CEO and Director
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.
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.
For further information: Nick Hurst, 416-586-1942, email@example.com