"Significant removal of debt and reduction of
issued shares"
LONDON, July 20, 2020 /CNW/ - Meridian Mining SE (TSXV:
MNO) ("Meridian" or the "Company") is pleased to announce that it
has issued 11,869,142 common shares for the repayment of
C$16,669,531 of Company debt.
5,958,540 common shares have been issued to Sentient Global
Resource Fund IV L.P ("Fund IV") for the payment of C$14,896,350 and 5,910,602 common shares have
been issued to The Sentient Group's nominees for the repayment of
C$1,773,181. As part of the now
completed corporate restructure and related capital raise the
Company has repaid a significant part of its debts. The remaining
loan outstanding to Fund IV, is held via a Limited Recourse Loan
with a zero percent (0.0%) interest rate, a two year term and a
pre-set conversion price of C$2.50
per common shares for a fixed number of 5,869,671 common shares
1. The common shares issued in respect of the debt
settlements are subject to a four month hold period expiring on
November 17, 2020.
The Company also announces that Fund IV has surrendered
141,011,304 common shares in the capital of the Company to
facilitate the restructuring of the Company's capital
structure.
The completion of the repayment of debt, together with the
recently completed financing and the surrender of equity by Fund IV
is a significant milestone for the Company and allows it to focus
on its portfolio of exciting exploration and resource development
projects in Brazil.
As a result of the recent transactions, the Company's current
capital structure consists of the following:
- 83,408,985 common shares.
- 46,766,666 share purchase warrants. Each warrant is exercisable
into once common share at a price of C$0.11 until July 15,
2022.
- 1,962,060 compensation units issued to finders under the
recently completed equity financing. Each compensation unit
exercisable at a price of C$0.075
into one common share and one share purchase warrant until
July 15, 2022. Each warrant
exercisable into once common share at a price of C$0.11 until July 15,
2022.
- The Company is in process of reducing the number of stock
options outstanding to correlate with the new capital structure and
represent not more than 10% of the number of issued and outstanding
common shares in accordance with the terms of the Company's Stock
Option Plan. It is anticipated that the Company will have
approximately 8,340,000 stock options outstanding once the
reduction is complete.
Dr. Adrian McArthur CEO, states, "The Company acknowledges the
support of Sentient Global Resource Fund IV L.P and the Sentient
Group in the restructuring of the Meridian, which has facilitated
the recent successful capital raise. Through this arrangement, the
two parties retain exposure to discovery upside, whilst allowing
Meridian to focus on its exciting exploration and resource
development portfolio with a broadened shareholder base."
1 See
Meridian news releases: April 27th, 28th and
June 18th, 2020
|
On behalf of the Board of Directors of Meridian Mining S.E.
Dr. Adrian McArthur
CEO, President and Director
Meridian Mining S.E.
Ph: +1 778-715-6410 (PST)
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 copper gold polymetallic
project, the Mirante da Serra manganese project and maintaining the
Ariquemes tin exploration portfolio in the state of Rondônia,
Brazil.
Further information can be found at www.meridianmining.co.
FORWARD-LOOKING STATEMENTS
Some statements in this presentation 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, development and exploitation of its properties and
potential mineralisation. 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 risks and 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, development and exploitation 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 or mineral resource estimate has been established.
In particular, because the Company's production decision relating
to Meridian Mineração 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.