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Meridian Announces Fully Subscribed CAD 10m Non-Brokered Private Placement Financing & Outlines 2025 Programs

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Meridian Mining has announced a fully subscribed CAD 10 million non-brokered private placement at CAD 0.39 per share, secured from a single European investor who will increase their stake to 12.1%. The funding will support the company's transformational 2025 plans for its flagship Cabaçal Au-Cu-Ag project in Brazil.

The company's Pre-Feasibility Study (PFS) is on track for Q1 2025 completion, with plans to initiate a Feasibility Study afterward. The 2025 program includes a 4,700-meter infill drilling program at Cabaçal and up to 11,700 meters at Santa Helena, where recent high-grade gold-silver discoveries have expanded the project's potential.

The proceeds will fund PFS completion, initiate the Feasibility Study, and support expanded drilling at Santa Helena and regional exploration along the 50km Cabaçal VMS Belt. The private placement is expected to close by February 17th, 2025, subject to regulatory approvals.

Meridian Mining ha annunciato un collocamento privato non mediato interamente sottoscritto di 10 milioni di CAD a CAD 0,39 per azione, garantito da un singolo investitore europeo che aumenterà la sua partecipazione al 12,1%. I fondi sosterranno i piani di trasformazione dell'azienda per il 2025 per il suo principale progetto Cabaçal Au-Cu-Ag in Brasile.

Lo Studio di Pre-Fattibilità (PFS) dell'azienda è in programma per essere completato nel primo trimestre del 2025, con piani per avviare successivamente uno Studio di Fattibilità. Il programma del 2025 include un programma di perforazione di infill di 4.700 metri a Cabaçal e fino a 11.700 metri a Santa Helena, dove recenti scoperte di oro-argento ad alto grado hanno ampliato il potenziale del progetto.

I proventi finanzieranno il completamento del PFS, avvieranno lo Studio di Fattibilità e sosterranno l'espansione della perforazione a Santa Helena e l'esplorazione regionale lungo la Cintura VMS di Cabaçal di 50 km. Si prevede che il collocamento privato venga chiuso entro il 17 febbraio 2025, soggetto ad approvazioni normative.

Meridian Mining ha anunciado una colocación privada no mediada completamente suscrita de 10 millones de CAD a CAD 0,39 por acción, asegurada por un único inversor europeo que aumentará su participación al 12,1%. La financiación apoyará los planes de transformación de la compañía para 2025 para su principal proyecto Cabaçal Au-Cu-Ag en Brasil.

El Estudio de Pre-Factibilidad (PFS) de la compañía está en camino de completarse en el primer trimestre de 2025, con planes para iniciar un Estudio de Factibilidad posteriormente. El programa de 2025 incluye un programa de perforación de relleno de 4,700 metros en Cabaçal y hasta 11,700 metros en Santa Helena, donde recientes descubrimientos de oro-plata de alta ley han ampliado el potencial del proyecto.

Los ingresos financiarán la finalización del PFS, iniciarán el Estudio de Factibilidad y apoyarán la perforación expandida en Santa Helena y la exploración regional a lo largo del Cinturón VMS de Cabaçal de 50 km. Se espera que la colocación privada se cierre antes del 17 de febrero de 2025, sujeto a aprobaciones regulatorias.

Meridian Mining1천만 CAD 규모의 전액 구독된 비중개 사모펀드를 1주당 CAD 0.39에 발표했으며, 이는 단독 유럽 투자자에 의해 보장되며 그들의 지분은 12.1%로 늘어날 것입니다. 이 자금은 브라질에 있는 그들의 주력 Cabaçal Au-Cu-Ag 프로젝트에 대한 2025년 전환 계획을 지원할 것입니다.

회사의 사전 타당성 조사(PFS)는 2025년 1분기 완료를 목표로 하고 있으며, 이후 타당성 조사를 시작할 계획입니다. 2025년 프로그램에는 Cabaçal에서의 4,700미터 내부 굴착 프로그램과 최근 고등급 금-은 발견이 프로젝트의 잠재력을 확장한 Santa Helena에서 최대 11,700미터의 굴착이 포함됩니다.

수익금은 PFS 완료, 타당성 조사 시작 및 Santa Helena와 Cabaçal VMS 벨트의 50km를 따라 지역 탐사를 지원하는 확장된 굴착을 자금 지원할 것입니다. 사모펀드는 2025년 2월 17일까지 마감될 것으로 예상되며, 규제 승인을 받을 예정입니다.

Meridian Mining a annoncé un placement privé non sollicité entièrement souscrit de 10 millions CAD à 0,39 CAD par action, assuré par un seul investisseur européen qui augmentera sa participation à 12,1 %. Le financement soutiendra les plans de transformation de l'entreprise pour 2025 concernant son projet phare Cabaçal Au-Cu-Ag au Brésil.

L'étude de préfaisabilité (PFS) de l'entreprise est en bonne voie pour être achevée au premier trimestre 2025, avec des plans pour initier ultérieurement une étude de faisabilité. Le programme de 2025 comprend un programme de forage de recheminement de 4 700 mètres à Cabaçal et jusqu'à 11 700 mètres à Santa Helena, où de récentes découvertes de haut grade en or-argent ont élargi le potentiel du projet.

Les recettes financeront l'achèvement de la PFS, initieront l'étude de faisabilité et soutiendront le forage élargi à Santa Helena ainsi que l'exploration régionale le long de la ceinture VMS de Cabaçal de 50 km. La clôture du placement privé est prévue d'ici le 17 février 2025, sous réserve d'approbations réglementaires.

Meridian Mining hat eine vollständig gezeichnete nicht vermittelte Privatplatzierung in Höhe von 10 Millionen CAD zu einem Preis von 0,39 CAD pro Aktie angekündigt, gesichert von einem einzelnen europäischen Investor, der seinen Anteil auf 12,1% erhöhen wird. Die Finanzierung wird die Transformationspläne des Unternehmens für 2025 für das Cabaçal Au-Cu-Ag Projekt in Brasilien unterstützen.

Die Machbarkeitsstudie (PFS) des Unternehmens ist auf Kurs, im ersten Quartal 2025 abgeschlossen zu werden, mit Plänen zur Einleitung einer anschließenden Machbarkeitsstudie. Das Programm 2025 umfasst ein Infill-Bohrprogramm von 4.700 Metern in Cabaçal und bis zu 11.700 Metern in Santa Helena, wo kürzliche Entdeckungen von hochgradigem Gold und Silber das Potenzial des Projekts erweitert haben.

Die Erlöse werden die Fertigstellung des PFS finanzieren, die Machbarkeitsstudie einleiten und erweiterte Bohrungen in Santa Helena sowie regionale Erkundungen entlang des 50 km langen Cabaçal VMS Gürtel unterstützen. Es wird erwartet, dass die Privatplatzierung bis zum 17. Februar 2025 abgeschlossen wird, vorbehaltlich regulatorischer Genehmigungen.

Positive
  • Secured CAD 10M funding through private placement at CAD 0.39 per share
  • Strategic European investor increases stake to 12.1%
  • PFS completion expected in Q1 2025
  • Discovery of high-grade gold-silver VMS system at Santa Helena
  • Enhanced working capital position beyond PFS completion
Negative
  • Additional metallurgical testing required at Santa Helena before resource reporting
  • Delay in Santa Helena's initial resource report to Q2 2025
  • Subject to regulatory approvals and four-month hold period on securities

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

HIGHLIGHTS:

  • Meridian Mining plans transformational 2025 as an emerging Brazilian copper gold developer

    • Driven by its flagship Cabaçal Au-Cu-Ag VMS mine development and expansion programs

    • Resource growth from the Santa Helena infill and expansion program

    • Belt scale exploration program along 50km Cabaçal VMS Belt

  • CAD 10 million fully subscribed non-brokered financing at CAD 0.39

    • Subscribed by a single sophisticated European investor

    • Proceeds to be used to advance Cabaçal PFS completion, initiation of the subsequent Feasibility Study, expanded drill program at Santa Helena and regional exploration

LONDON, UK / ACCESS Newswire / January 28, 2025 / Meridian Mining UK S (TSX:MNO)(Frankfurt/Tradegate:2MM)(OTCQX:MRRDF) ("Meridian" or the "Company") is pleased to announce its expanded plans for 2025 along with a strategic non-brokered private placement of CAD 10M (the "Private Placement"), fully subscribed by a single European investor increasing their stake to [12.1]%, as the Company continues towards its goal of being Brazil's next copper-gold producer.

Mr. Gilbert Clark, CEO, comments: "Meridian is now set for a potentially transformational 2025, led by its flagship project, the advanced Cabaçal Au-Cu-Ag project ("Cabaçal"). We are grateful for the considerable support from our European investor. On closing of the Private Placement, Meridian will have an enhanced working capital position well beyond the completion of Cabaçal's Pre-Feasibility Study ("PFS"), and with an expected positive report, will be substantially financed to initiate the subsequent Feasibility Study ("FS").

The PFS remains on schedule for reporting by the end of Q1 2025 and is expected to build on the confidence outlined in Cabaçal's PEA1, by increasing certainty, using a staged production expansion scenario, additional drill data, metallurgical test work, and other studies advanced and completed in 2024.

Meridian is focussed both on, developing Cabaçal's near-term potential to be Brazil's next Au-Cu-Ag mine, as well as testing the untapped exploration potential of the broader Cabaçal VMS belt ("the Belt). The potential of the Santa Helena Au-Cu-Ag & Zn deposit ("Santa Helena") as a future open-pit resource is advancing, illustrating the longer-term vision of the Company for a multiple mine along the VMS belt. Our discovery of the high-grade gold-silver VMS system in the western sector of Santa Helena in 20242, has locally changed the nature of the deposit's potential towards a more precious metal system. An extensive section of this open, high-grade gold-silver extension is hosted within the oxide and transitional layers ("Figure 2"), where Meridian currently has no metallurgical data. To avoid under-reporting the recoverable gold and silver mineralization at Santa Helena, the Company will complete additional metallurgical test work, before reporting the initial Santa Helena resource which is expected in Q2.

With the growing exploration potential of the Belt's southeastern zone centred on Santa Helena's open mineralization and its near-mine upside, Meridian will include into Santa Helena's Preliminary License submission's scope, the ability for the historical mine site to be re-established as a stand-alone processing facility, with associated infrastructure waste and dry-stack-tailing facilities.

Throughout 2025, Meridian's local team will continue to work professionally and safely to advance Cabaçal's and the belt's future, and to be actively engaged with the local communities. As a leading local employer, the Company is looking forward to continuing its support via direct and in-direct investments into the local economy throughout 2025."

1 Meridian Mining News releases March 06, 2023
2 Meridian Mining News releases November 20 and December 16, 2024

Figure 1: Cabaçal PFS drill coverage

Cabaçal 2025 Outlook

Cabaçal's PFS is on schedule for reporting in Q1 2025. The Company has strengthened the geological controls by adding 37,000 additional meters of drilling and 53,000 assays to the database for geological modeling, resource estimation and infrastructure planning. Civil engineering, geotechnical, and hydrological studies to optimize the mine site's design input parameters have been completed. Metallurgical repeatability tests and sulphide reagent optimization have been concluded, and final reports are pending. On reporting of the Cabaçal PFS, Meridian anticipates the launch of Cabaçal's FS.

In 2025, the Company plans to complete an infill drill program of up to 4,700 metres, including areas of the deposit where historical drill hole data was only used for geological interpretation. The infill drilling will supplement and/or replace this historical data with mineralized intercepts. On receipt of the PFS's final geological model and mine plan, a limited grade control program centred on the future starter pit will be completed.

The Company has commenced the preparation for the next stage of permitting, assuming that the Preliminary Licence is granted in H1 2025. To this end, additional planning has been initiated for the supplementary data and reports needed to be submitted with Cabaçal's subsequent Installation License submission ("LI"; Licença de Instalação). This submission is planned for H2 2025.

Santa Helena 2025 Outlook

Santa Helena's resource program was expanded with the discovery of the western extension of shallow high-grade gold-silver dominant VMS mineralization reported late in Q4 20243. The immediate program is to test the metallurgical properties of this Au and Ag mineralization hosted within the oxide and transitional zones as no historical data exists for these zones. This program, testing the combined recovery processes for precious metals via gravity and then flotation, is ongoing.

The additional time needed to complete Santa Helena's full metallurgical programs, provides a short period of opportunity to further infill and expand drill coverage of Santa Helena. In consultation with Santa Helena's resource estimation consultants, Cube Consulting Ltd (Perth, Western Australia), this short, targeted drill campaign will also test a selection of historical holes for twinning and replacement of drill records from Santa Helena's database with partial sampling and limited geological input, thus improving the confidence in the geology and grade models for the Santa Helena deposit ("Figure 2"). The initial resource is scheduled for Q2 2025 with an updated resource in H1 2026. In total, the Company plans for up to 11,700m of drilling at Santa Helena in 2025.

3 Meridian Mining News releases November 20 & December 16, 2024

Figure 2: VMS sheet in long section, with holes selected for resource modelling in blue and those in red rejected due to a combination of data lost in whole or part, and/or in conflict with more recent drilling.

Non-Brokered Private Placement

Meridian has launched a fully subscribed non-brokered private placement of 25,641,025 common shares of the Company (the "Common Shares") at a price of CAD 0.39 per Common Shares for aggregate gross proceeds of up to CAD 10 million.

Pursuant to the Private Placement, a single strategic European investor has subscribed for 25,641,025 Common Shares. Prior to the Private Placement, the European investor-owned 4.6% of the Company. Upon closing of the Private Placement, the European investor will become a new insider of the Company owning approximately 12.1% of the Company on a non-diluted basis

The net proceeds from the Private Placement are expected to be used in advancing the Cabaçal's PFS, initiate the FS and related programs as well as associated resource and exploration activities of the broader Cabaçal Cu-Au-Ag VMS belt, regional targeting, and for working capital and general corporate purposes.

The Private Placement is expected to close during the week of February 17th, 2025, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the acceptance of the Toronto Stock Exchange.

Securities to be issued pursuant to the Private Placement will be subject to a four-month hold period under applicable securities laws in Canada.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

About Meridian

Meridian Mining is focused on:

  • The development and exploration of the advanced stage Cabaçal VMS gold‐copper project;

  • The initial resource definition at the second higher-grade VMS asset at Santa Helena as the first stage of the Cabaçal Hub development strategy;

  • Regional scale exploration of the Cabaçal VMS belt to expand the Cabaçal Hub strategy; and

  • Exploration in the Jaurú & Araputanga Greenstone belts (the above all located in the State of Mato Grosso, Brazil).

The Preliminary Economic Assessment technical report (the "PEA Technical Report") dated March 30, 2023, entitled: "Cabaçal Gold-Copper Project NI 43-101 Technical Report and Preliminary Economic Assessment, Mato Grosso, Brazil" outlines a base case after-tax NPV5 of USD 573 million and 58.4% IRR ("Table 1") from a pre-production capital cost of USD 180 million, leading to capital repayment in 10.6 months (assuming metals price scenario of USD 1,650 per ounces of gold, USD 3.59 per pound of copper, and USD 21.35 per ounce of silver). Cabaçal has a low All-in-Sustaining-Cost of USD 671 per ounce gold equivalent for the first five years, driven by high metallurgical recovery, a low life-of-mine strip ratio of 2.1:1, and the low operating cost environment of Brazil.

The Cabaçal Mineral Resource estimate consists of Indicated resources of 52.9 million tonnes at 0.6g/t gold, 0.3% copper and 1.4g/t silver and Inferred resources of 10.3 million tonnes at 0.7g/t gold, 0.2% copper & 1.1g/t silver (at a 0.3 g/t gold equivalent cut-off grade).

Readers are encouraged to read the PEA Technical Report in its entirety. The PEA Technical Report may be found on the Company's website at www.meridianmining.co and under the Company's profile on SEDAR+ at www.sedarplus.ca .

The qualified persons for the PEA Technical Report are: Robert Raponi (P. Eng), Principal Metallurgist with Ausenco Engineering), Scott Elfen (P. E.), Global Lead Geotechnical and Civil Services with Ausenco Engineering), Simon Tear (PGeo, EurGeol), Principal Geological Consultant of H&SC, Marcelo Batelochi, (MAusIMM, CP Geo), Geological Consultant of MB Geologia Ltda, Joseph Keane (Mineral Processing Engineer; P.E), of SGS, and Guilherme Gomides Ferreira (Mine Engineer MAIG) of GE21 Consultoria Mineral.

On behalf of the Board of Directors of Meridian Mining UK S

Mr. Gilbert Clark - CEO and Director

Meridian Mining UK S
8th Floor, 4 More London Riverside
London SE1 2AU
United Kingdom

Email: info@meridianmining.co
Ph: +1 778 715-6410 (BST)

Stay up to date by subscribing for news alerts here: https://meridianmining.co/contact/
Follow Meridian on Twitter: https://twitter.com/MeridianMining
Further information can be found at: www.meridianmining.co

Qualified Person

Mr. Erich Marques, B.Sc., FAIG, Chief Geologist of Meridian Mining and a Qualified Person as defined by National Instrument 43-101, has reviewed, and verified the technical information in this news release.

FORWARD-LOOKING STATEMENTS

Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in Meridian's most recent Annual Information Form filed on www.sedarplus.ca. While these factors and assumptions are considered reasonable by Meridian, in light of management's experience and perception of current conditions and expected developments, Meridian can give no assurance that such expectations will prove to be correct. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Meridian disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or results or otherwise.

SOURCE: Meridian Mining UK S



View the original press release on ACCESS Newswire

FAQ

What is the size and price of Meridian Mining's (MRRDF) latest private placement?

Meridian Mining's private placement is CAD 10 million at CAD 0.39 per share, consisting of 25,641,025 common shares.

When will Meridian Mining (MRRDF) complete the Cabaçal Pre-Feasibility Study?

The Cabaçal Pre-Feasibility Study (PFS) is scheduled for completion by the end of Q1 2025.

How many meters of drilling does MRRDF plan for Santa Helena in 2025?

Meridian Mining plans to complete up to 11,700 meters of drilling at Santa Helena in 2025.

When is the expected closing date for MRRDF's CAD 10M private placement?

The private placement is expected to close during the week of February 17th, 2025.

What percentage stake will the European investor hold in MRRDF after the private placement?

The European investor will increase their stake from 4.6% to approximately 12.1% after the private placement.

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