LONDON, Aug. 20, 2018 /CNW/ - Meridian Mining SE (TSXV: MNO) ("Meridian" or the "Company") today announced that that on August 17, 2018 it entered into a new loan agreement with Sentient Global Resources Funds IV LP ("Lender") pursuant to which the Lender made available to the Company a credit facility of USD 1,500,000 to fund the Company's manganese operations in Brazil and general working capital. The loan bears interest at a rate of 10% per annum and matures on September 30, 2019.
The proceeds from the Amendment will be used for:
Purchasing or leasing of additional pre-screening equipment and ancillary equipment;
Due diligence on new prospects outside of the Company's current tenements; and
General working capital.
Mr. Clark, Interim CEO & President, states that "By working with the Espigão mining and processing teams, we have identified significant cost reductions associated with the production of the Manganese concentrate. The pre-screening of the mined material prior to hauling to the processing plants, removes 75% of the gangue material while minimizing manganese loss. The residual ~25% volume is then processed at the plants and produces an equivalent volume of Mn concentrate.
The Company is also evaluating the opportunity of adding Mn prospects to its current portfolio of properties.
The Company also announces that Mr. Carlos Braga will depart from the Company on September 30th, 2018. Mr. Braga has also resigned as COO. The Company thanks Mr. Braga for his years of service with Meridian and wishes him best in the future.
The loan 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
Gilbert Clark Interim CEO, President 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. Meridian is currently producing high grade manganese at its project located at Espigão do Oeste.
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 Meridian Mineraçao Jaburi S.A, 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.
For further information: please visit the Company's website at www.meridianmining.co or contact: Jonathan Richards, +1-604-681-0405, [email protected]