LONDON, Dec. 27, 2017 /CNW/ - Meridian Mining SE (TSX V: MNO) ("Meridian " or the "Company") today announced it has extended the US$1-million short-term loan facility from the Sentient Group Ltd. to April 30, 2018. In addition, the Company's wholly owned subsidiary, Cancana Resources Corp ("Cancana"), has arranged a new loan facility of US$1.5 million, which will be used to settle the convertible debenture in the same amount, which was payable to Sentient Global Resources Funds IV LP and matured on December 23, 2017.
"The amended and new loan facilities give the Company the flexibility to focus on the ramp up of the Jaburi plant and to investigate future financing options," said Anthony Julien, President and CEO of Meridian.
The Sentient Group Ltd has agreed to extend the US$1-million non-arm's length loan facility to April 30, 2018. All other terms remain the same. The loan bears interest at a rate of 10 per cent per annum and matures on April 30, 2018.
The new Cancana US$1.5 million loan facility is unsecured, bears interest at a rate of 10% per annum, matures on April 30, 2018 and is guaranteed by Meridian.
The amendment of the loan facility and the new 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.
