Financing conducted with two current shareholders at A$0.105 per share
By Devika Patel
Knoxville, Tenn., Oct. 6 - Meridian Minerals Ltd. said it could sell up to 105,948,810 ordinary shares to two current shareholders in a private placement.
The company could raise as much as A$11.12 million by selling the shares at A$0.105 apiece, a 12.9% premium to the Oct. 5 closing share price of A$0.093.
BZ Minerals (Australia) Pty. Ltd. will buy 62,151,691shares; North West Mining and Geology Group Co. Ltd., the company's largest shareholder, may buy up to 43,797,119 shares to maintain its percentage interest, but may invest less.
"Meridian is extremely pleased to have such strong support for the Lennard Shelf Project from international zinc industry participants BZ Minerals and North West Mining," Meridian's managing director Jeremy Read said in a press release. "Given that the placement is at a 22% premium to the share price, this support recognizes the significant progress that has been made on the project to date with total mineral resources increasing 90% since November, as well as the long-term potential for lead and zinc prices.
"With this placement, Meridian is very well positioned to accelerate the completion of the Emanuel Range feasibility study and work with our consultants to ramp up the feasibility study. It is further evidence that our cornerstone investors continue to ensure that the Lennard Shelf Project remains well financed and provides Meridian with the opportunity to consider investing in other projects.
"After reaching recent agreement with the traditional owners for drilling to recommence at the Cadjebut Splay prospect, we have mobilized a drill rig to site and will now accelerate other aspects of the Emanuel Range feasibility study following completion of the placement."
Meridian Minerals, based in West End, Australia, explores for minerals.
| Issuer: | Meridian Minerals Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$11,124,625
|
| Shares: | 105,948,810
|
| Price: | A$0.105
|
| Warrants: | No
|
| Investors: | BZ Minerals (Australia) Pty. Ltd. (for A$6,525,928), North West Mining and Geology Group Co. Ltd. (for up to A$4,598,697)
|
| Pricing date: | Oct. 6
|
| Stock symbol: | Australia: MII
|
| Stock price: | A$0.093 at close Oct. 6
|
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