LONDON, Dec. 11, 2017 /CNW/ - Meridian Mining SE (TSX V: MNO) ("Meridian " or the "Company") today announced it has increased the loan facility from Sentient Global Resources Funds IV LP by US$1,000,000. The proceeds from the loan will be used to for the Jaburi plant expansion and working capital on Meridian's Manganese Project in Espigão do Oeste, Rondônia.
"The increase in the loan facility gives the Company the working capital to increase our exports of manganese and is for the final payment on the Jaburi plant upgrade," said Anthony Julien, President and CEO of Meridian. "Our customers are demanding more product and the Jaburi plant upgrade will allow the Company to expand production capacity up to 100,000 tonnes per annum."
Sentient Equity Partners has agreed to increase the non-arm's length loan facility by US$1,000,000 to US$8,500,000. All other terms remain the same. The loan bears interest at a rate of 10% per annum and matures on April 30, 2018.
The amendment of the loan facility constitutes a "related party transaction" for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The transaction is exempt from the valuation and minority approval requirements of MI 61-101 in accordance with sections 5.5(a) and 5.7(a), respectively, by virtue of the fact that the value of the loan is less than 25% of the Company's market capitalization.
ABOUT MERIDIAN
Meridian Mining SE is focused on the acquisition, exploration, development and mining activities in Brazil. The Company is currently focused on exploring and developing the Espigão manganese project, the Bom Futuro tin JV area, and adjacent areas in the state of Rondônia. The Company employs a two-pronged strategy with the objective of growing pilot production while advancing a parallel multi-commodity regional exploration program. Meridian is currently producing high grade manganese at its project located at Espigão do Oeste.
