Meridian Minerals (ASX: MII) has agreement from an underwriter to raise $7.75 million to fund acquisition of package of zinc-lead tenements from Xstrata.
Patersons Securities Limited will raise the funds by the placement of up to 17,218,000 shares at 4.5 cents per share.
In May, Meridian entered into an MOU to purchase a package of zinc-lead tenements containing existing JORC-compliant resources in the Lennard Shelf region of Western Australia, from the Xstrata Zinc/Teck Cominco Limited joint-venture company, Lennard Shelf Pty Ltd.
The Lennard Shelf region is regarded as one of the world’s premier Mississippi Valley Type (“MVT”) provinces containing pre-mining zinc-lead resources of 41 million tonnes (“Mt”) @ 7.9% zinc and 3.2% lead.
In the package to be acquired are existing JORC resources of 8.2 Mt @ 7.4% Zn and 4.6% Pb.
In addition, there are multiple areas of known zinc-lead mineralisation exist within the tenement package including the Kapok Mine, Kapok West, Cadjebut Splay, Palijippa and Wagon Pass prospects.
Consideration for the acquisition will be 25,000,000 Meridian shares, subject to an ASX imposed escrow period and final due diligence.
Meridian was required to complete a $5 million dollar exploration and appraisal program over 2 years to be funded by a staged capital raising.
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