Australian zinc company developer Meridian Minerals (ASX: MII) has inked a deal to raise $10.5 million from leading Chinese explorer and mining bureau, Northwest Mining and Geology Group Co., Ltd for Nonferrous Metals (NWME).
In a nice progression for Meridian shareholders, the placement, at 8 cents per share, is at a 78% premium to the previous capital raising and a 23% premium to the current share price.
Funds raised by the Placement will be used to fast track the exploration and development program at the Lennard Shelf Project, located in the Kimberly region of Western Australia.
Current defined Inferred, Indicated and Measured resources at Lennard Shelf are 8.2m @ 7.4% Zn and 4.5% Pb (comprising 24,000t of Measured resource, 3,039,000t of Indicated resource and 5,137,000t of Inferred resource).
A +20,000m drill program using two, and possibly three drill rigs will undertaken at the Kapok and Kapok West mineral resources, with drilling anticipated to commence in August.
Meridian has an exclusive option over the Lennard Shelf project and the placement is conditional on the completion of the acquisition of the Lennard Shelf project from the vendors. Upon completion of the Placement, NWME will hold approximately 45% of the issued capital of Meridian. This assumes that the acquisition of Lennard Shelf and the issue of shares to LSPL has also been completed.
NWME will also have a right of first refusal to acquire up to 35% of any mineral concentrates which are produced from Lennard Shelf on international benchmark terms.
Meridian’s Managing Director Jeremy Read said “we feel that the involvement of such a strong development partner will prove to be a key milestone in the successful development of Lennard Shelf."
“Northwest Mining and Geology Group Co., Ltd for Nonferrous Metals has proven technical and financial capabilities developed on the world stage over an extensive period of time.”
Directors of Meridian will unanimously recommend the transaction to shareholders. An Independent Expert's Report will be commissioned to provide an assessment of the transaction for Meridian shareholders.
The Placement to NWME is subject to shareholder and Foreign Investment Review Board (FIRB) and Chinese Government approval. The Company is currently preparing a notice of meeting with regard to this Placement and it will be dispatched to shareholders as soon as possible.
No comments:
Post a Comment