OSLO, NORWAY and VANCOUVER, Aug. 17 /CNW/ - With reference to press
release of July 4, 2007, Wega Mining announces that it has taken up 80% of
Merit Mining Corp. ("Merit")'s private placement, and acquired 36,363,636
units for a total consideration of CAD 12,000,000.
The units, priced at CAD 0.33 each, are comprised of one common share and
one warrant. Each warrant gives right to acquire one shares and is exercisable
on or before August 17, 2009, at an exercise price of $0.50 per share. If at
any time during the period of the warrant after August 15, 2008, the closing
market price of the Merit's shares exceeds $0.70 per share for 30 consecutive
trading days, Merit may, upon written notice to the holder of the warrants,
request exercise of the warrants within 30 days of such written notice.
Securities issued pursuant to the private placement are subject to a four
month hold period until December 16, 2007.
As a result of its subscription, Wega Mining ASA, now holds 83,982,683
common shares of Merit, representing 60% of the issued and outstanding shares
of the company or 65% on a fully diluted basis.
Proceeds of the private placement will be used by the Company to complete
the development and construction of the Greenwood mill and the
Lexington-Grenoble underground mine, scheduled for production in 2008; and to
accelerate the exploration and development of the J&L polymetallic project,
located near Revelstoke, British Columbia.
For further information:
For further information: Lars Marius Furu, CEO, Wega Mining ASA, + 47