LONDON, UK, Oct. 10, 2017 /CNW/ - Meridian Mining SE (TSX V: MNO) ("Meridian " or the "Company")today announced production and sales results from its Espigão manganese project for the third quarter ending September 30, 2017. All financial results are reported in US dollars unless otherwise stated.
"Q3 has seen record production levels from our Rio Madeira plant which has enabled the Company to exceed production targets for the quarter." said Anthony Julien, President and CEO of Meridian. "The Rio Madeira plant has carried the business, as we complete the upgrades to our Jaburi plant. We have now cold commissioned the Jaburi plant and plan to ramp up its production this month."
Production & Sales Results
(Unless otherwise noted, comparisons are made between Q3 fiscal 2017 and Q3 fiscal 2016)
- Meridian achieved production of 18,488 tonnes in the third quarter, compared to 13,445 tonnes in Q3 2016. This represents a 38% increase in line with the forecasted ramp up of manganese operations as planned for 2017.
- The Rio Maderia plant achieved a record production in August of 7,091 tonnes
- Sales in the third quarter were 8,056 tonnes of manganese oxide mineral product compared with 6,622 tonnes in Q3 2016, a increase of 22%
- Meridian has confirmed orders for 2017 totalling 53,129 tonnes, which will account for all planned production in 2017.
- CIF Tianjin pricing for 44% manganese was $6.54 per dmtu as of September 30th, 2017. (source: www.metalbulletin.com).
Offtake Sales Update
The Company has signed an offtake contract for a minimum sale of 20,000 tonnes and the option to increase to 30,000 tonnes for 2018. This offtake is to the same international customer that purchased 20,000 tonnes in 2017 (see news release dated June 21, 2017).
The sales contract will consist of shipments to be completed before year-end 2018. Given that Meridian's product is high grade, it will be priced at a premium to benchmark.
The first shipment for 2017 is underway with product been stockpiled at Porto Velho port, in Rondonia and is being loaded onto barges to be trans-shipped in bulk at Outeiro port in Para State.
The technical information about the Company's production and sales activities has been prepared under the supervision of and verified by Carlos Braga (B.Sc., MBA, member of the Chilean Mining Commission), the Chief Operating Officer of Meridian Mining, who is a "qualified person" within the meaning of National Instrument 43-101.
On behalf of the Board of Directors of
Meridian Mining SE
President, CEO and Director
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 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 do 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 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 in no way passed upon the merits of the proposed Arrangement 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: Jonathan Richards, 604-681-0405, [email protected]