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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