The loan bears interest at a rate of 10%/y and matures on 30 September 2019.
The proceeds from the Amendment will be used for:
- Purchasing or leasing of additional pre-screening equipment and ancillary equipment;
- Due diligence on new prospects outside of the company's current tenements; and
- General working capital.
Mr Clark, Interim CEO & President, said: "By working with the Espigão mining and processing teams, we have identified significant cost reductions associated with the production of the manganese concentrate. The pre-screening of the mined material prior to hauling to the processing plants, removes 75% of the gangue material while minimising manganese loss. The residual ~25% volume is then processed at the plants and produces an equivalent volume of manganese concentrate.”
Meridian Mining is also evaluating the opportunity of adding manganese prospects to its current portfolio of properties.
The company has also announced that Carlos Braga will depart from the company on 30 September 2018. Braga has also resigned as COO.
The loan 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 capitalisation.
Read the article online at: https://www.globalminingreview.com/finance-business/21082018/meridian-mining-receives-new-loan-agreement/