By Laura Lutz
Washington, March 19 - Merit Mining Corp. arranged a private placement of shares with Wega Mining AS for C$10 million.
Wega has agreed to buy 4,761,904 shares in an immediate tranche for proceeds of C$1 million and 42,857,143 shares in a second tranche for C$9 million.
The second tranche is expected to settle on May 3.
The shares will be priced at C$0.21 each.
Along with the second tranche of shares, Wega will receive warrants for 17,142,857 shares exercisable at C$0.35 for 180 days and warrants for 12.5 million shares exercisable at C$0.40 for one year.
Proceeds will be used for Merit's Greenwood gold project and future project acquisitions.
Following completion of the placement, Wega will own about 53.5% of Merit's outstanding share capital.
Merit is a mineral exploration company based in Vancouver, B.C.
| Issuer: | Merit Mining Corp.
|
| Issue: | Shares
|
| Amount: | C$10 million
|
| Shares: | 47,619,047
|
| Price: | C$0.21
|
| Warrants: | For 29,642,857 shares
|
| Warrant expiration: | 180 days for 17,142,857 shares; one year for 12.5 million shares
|
| Warrant strike price: | C$0.35 for 180-day warrants; C$0.40 for one-year warrants
|
| Investor: | Wega Mining AS
|
| Pricing date: | March 19
|
| Settlement date: | May 3 (for C$9 million)
|
| Stock symbol: | TSX Venture: MEM
|
| Stock price: | C$0.29 at close March 19
|
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