Huakan International Mining Inc fka HK

[NYBob]

Merit Mining Corp. Arranges Private Placement of up to C$15 Million
VANCOUVER, July 3 /CNW/ -

Merit Mining Corp. -
announces that it has arranged a private placement of up to
45,454,545 units, priced at $0.33 per unit, for gross
proceeds of up to C$15 million.
The private placement is expected to close during July.

Each unit will be comprised of one common share and one
transferable share purchase warrant, with each share
purchase warrant entitling the holder to purchase one
additional common share on or before the date that is
two years from the closing of the private placement, at
an exercise price of $0.50 per share.

If at any time during the period of the warrant that is
12 months after the date of issuance of the warrants
the closing market price of the Company's common shares
on the TSX Venture Exchange exceeds $0.70 per share
for 30 consecutive trading days, the Company may, upon
written notice to the holder of the warrants, request
exercise of the warrants.

The private placement is subject to acceptance for filing
by the TSX Venture Exchange. All securities to be issued
pursuant to the private placement will be subject to a
hold period of four months.

Proceeds of the private placement will be used by the
Company to complete the development and construction of
the Greenwood mill and Lexington-Grenoble mine, expected
to be in production in first half of 2008;

to advance the exploration and development of the J & L
polymetallic project, located near Revelstoke, BC;
and for further acquisitions.

The Greenwood Gold Project,
the Company's flagship project is located in the highly
mineralized Boundary District of southern British Columbia,
ranking sixth largest in gold production in British Columbia
with 1.3 million ounces of gold.

Much of this historic production came from
the Phoenix copper-gold skarn, located 1 kilometer north
of the Company's Golden Crown property.

The Republic district of northern Washington, USA,
50 kilometers south of the claims, has past production
and resources of the area between Greenwood and
Republic, which exceeds 7.4 million ounces of gold.

Wega Mining ASA,
Merit's largest shareholder, is expected to subscribe for
80% of the private placement.
Following the closing of the transaction and assuming
the 45,454,545 million units are fully subscribed for,
with Wega Mining subscribing for 80% of the units,
then Wega Mining will own 83,982,683 common shares of
Merit Mining Corp.,
representing approximately 60.4% of the issued and
outstanding shares or 65.0% on a fully diluted basis.

Wega Mining ASA
is an Oslo-based international mining company focused
on exploring, developing and operating gold, copper
and zinc deposits.
The company currently holds exploration licenses in
Guinea, Canada, Portugal, Ecuador, Romania and Norway,
and interests in one gold producer and one advanced
staged gold project in Canada.
It trades on Oslo Axess, an exchange regulated by
the Oslo Stock Exchange, under the ticker WEMI.
Further information can be accessed at
http://www.wegamining.com

Fred Sveinson, CEO of Merit, states
"This second investment in our Company by Wega Mining
will enable us to complete the development of
the Greenwood Gold Project to production and to pursue
other advanced stage projects.
We look forward to continuing to work with Wega Mining
to achieve our goal of building a diversified
international mining company."

Merit Mining Corp.

Signed "Fred Sveinson"

Fred Sveinson, President & CEO

The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of
this release.

The statements in this New Release may contain certain
forward-looking statements. Actual events or results may
differ from the Company's expectations. Certain risk
factors may also affect the actual results achieved by
the Company.

Source: Canada NewsWire (July 4, 2007 - 12:19 AM EDT)

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http://www.meritminingcorp.com/greenwood.htm#goldencrown

http://www.meritminingcorp.com/projects.htm

http://www.meritminingcorp.com/greenwood.htm

http://www.investorshub.com/boards/board.asp?board_id=8268

http://www.investorshub.com/boards/board.asp?board_id=5981

http://siliconinvestor.advfn.com/subject.aspx?subjectid=56990


For further information please contact:

Fred Sveinson at [phone]