Meridian Mining Announces Private Placement

Meridian Mining has announced that it has entered into an agreement with Paradigm Capital, who has agreed to act as agent in connection with a private placement offering of units of  Meridian at $0.70 each, for proceeds of up to $9 million.
As quoted in the press release:

Each Unit will be comprised of one common share of the Company (a “Share”) and one half of one common share purchase warrant (each whole warrant a “Warrant”). Each Warrant will be exercisable for one Share for 24 months at a price to be determined in the context of the market.
The Agent has also been granted an option to increase the size of the Private Placement by up to 15% of the base offering size, which option shall be exercisable until two business days prior the closing date.
The net proceeds from the Private Placement will be used to fund exploration and development activities at the Company’s BMC project and recently acquired Bom Futuro project in northwestern Brazil, including financing the construction of a 69kV power transmission line at Bom Futuro which is required under the Investment Agreement relating to Bom Futuro following the completion of the Company’s technical audit and due diligence.  Certain proceeds may also be used for general corporate purposes.
The Agent will receive a cash commission on the sale of the Units equal to 7% of the aggregate gross proceeds of the Units sold by the Agent as well as that number of compensation options (the “Compensation Options”) equal to 7% of the number of Units placed by the Agent. Each Compensation Option will be exercisable for one common share of the Company for 24 months at the Issue Price.

Click here to read the full press release.