LONDON, Oct. 16, 2017 /CNW/ - Meridian Mining SE
(TSX V: MNO) ("Meridian" or the "Company") today announced it
has entered into a US$1,000,000
short-term loan facility with The Sentient Group Limited, an
affiliate of of its largest shareholder, Sentient Global Resources
Fund IV. The loan facility is intended to provide working
capital for the Company pending receipt of payment for recent
shipments of manganese from the Espigão project.
The loan incurs interest at 10 per cent, is unsecured, and is
due on the earlier of either the receipt of payment from the
upcoming export sale; funding from a new offtake arrangement with
key customers; or December 15,
2017.
The proceeds of the loan will be used to fund manganese
exportation costs, the ongoing commissioning and ramp up of the
pilot plant, continuing exploration on the Bom Futuro tin joint
venture and for general working capital purposes. The Company
continues to investigate financing options and is currently focused
on offtake negotiations.
"We are pleased to have the continued support from The Sentient
Group," said Meridian president and chief executive officer
Anthony Julien. "A portion of these
funds will be used for the ramp up of the pilot plant and the new
loan facility illustrates the confidence the Sentient Group has in
the manganese operations and the exploration targets."
The loan facility 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
"Anthony Julien"
Anthony Julien
President, CEO and Director
ABOUT MERIDIAN
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.
FORWARD-LOOKING STATEMENTS
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.