Meridian closes $50-million private placement

Executive Summary

• Meridian Mining closed a brokered private placement raising $50 million gross proceeds (64,102,564 shares at C$0.78 per share).
• Net proceeds will fund the definitive feasibility study for Cabacal, advance Santa Helena to an initial resource, expand regional exploration on the Cabacal VMS belt, and provide general corporate working capital.
• An insider purchased 7,371,795 shares in the offering; the transaction was exempt from MI 61‑101 valuation/approval thresholds.

Key Details

• Offering Size & Price: 64,102,564 common shares sold at C$0.78 per share, gross proceeds of US$50 million (approx.).
• Agents & Bookrunners: Stifel Canada, BMO Capital Markets, Beacon Securities Ltd. (co‑lead agents/joint bookrunners); SCP Resource Finance LP, Cormark Securities Inc., Raymond James Ltd. (co‑agents).
• Insider Participation: Insider bought 7,371,795 shares; deemed a related‑party transaction but exempt because neither the fair market value nor consideration exceeded 25 % of market cap. No director dissent recorded.
• Regulatory Note: No material change report filed within 21 days prior to closing as insider participation details were not yet confirmed; offering pending final TSX approval.
• Use of Proceeds:
• Advance definitive feasibility study for the Cabacal gold‑copper project.
• Continue development of Santa Helena toward an initial resource estimate.
• Expand exploration programs across the broader Cabacal volcanogenic massive sulphide (VMS) belt.
• General corporate, administrative costs and working capital.
• CEO Quote: Gilbert Clark highlighted that the financing provides a strong cash position to meet key milestones, including the final investment decision at Cabacal, Santa Helena resource work, and expanded belt‑scale exploration.
• Project Context (from PFS excerpt):
• Base‑case after‑tax NPV (5 % discount) of US$984 million; IRR 61.2 %.
• Pre‑production capital cost US$248 million; payback in ~17 months under base metal price assumptions.
• Proven & probable reserves: 41.7 Mt at 0.63 g/t Au, 0.44 % Cu, 1.64 g/t Ag (0.25 g/t Au‑eq cut‑off).

Notable Quotes

• “We are very pleased to have been strongly supported by our existing and new shareholders to successfully close this $50.0‑million financing… Meridian is now funded to meet key milestones, including … the final investment decision at the Cabacal Au‑Cu‑Ag project…” – Gilbert Clark, CEO

Materiality Assessment: Material – Positive (significant financing that materially advances project development and impacts shareholder value).