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Meridian Mining Announces Non-Arm's Length US$1million Loan Facility
Meridian Mining Announces Non-Arm's Length US$1million Loan Facility Canada NewsWi...
About this update from Meridian Mining Plc
[{"type":"text","content":"\n\n\n\nMeridian Mining Announces Non-Arm's Length US$1million Loan Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nLONDON, Oct. 16, 2017\n\n\n\nLONDON, Oct. 16, 2017 /CNW/ - Meridian Mining SE (TSX V: MNO) (\"Meridian\" or the \"Company\") today announced it has entered into a US$1,000,000 short-term loan facility with The Sentient Group Limited, an affiliate of of its largest shareholder, Sentient Global Resources Fund IV.  The loan facility is intended to provide working capital for the Company pending receipt of payment for recent shipments of manganese from the Espigão project.  \n\n\n \n \n\n \nThe loan incurs interest at 10 per cent, is unsecured, and is due on the earlier of either the receipt of payment from the upcoming export sale; funding from a new offtake arrangement with key customers; or December 15, 2017.  \n\nThe proceeds of the loan will be used to fund manganese exportation costs, the ongoing commissioning and ramp up of the pilot plant, continuing exploration on the Bom Futuro tin joint venture and for general working capital purposes.  The Company continues to investigate financing options and is currently focused on offtake negotiations.\n\n\"We are pleased to have the continued support from The Sentient Group,\" said Meridian president and chief executive officer Anthony Julien. \"A portion of these funds will be used for the ramp up of the pilot plant and the new loan facility illustrates the confidence the Sentient Group has in the manganese operations and the exploration targets.\"\n\nThe 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.\n\nOn behalf of the Board of Directors ofM...