Meryllion Resources Closes Second Tranche of Private Placement

Executive Summary

• Meryllion Resources closed a second tranche of its non‑brokered private placement, issuing 5,875,000 common shares at $0.05 each for gross proceeds of $293,750.
• Combined with the first tranche (closed Dec 23, 2015), total funds raised to date amount to $575,750.
• Proceeds are earmarked for exploration activities—including an upcoming drilling campaign on its ionic‑adsorption clay rare‑earth project in northeastern Tasmania—and general working capital.

Key Details

• Second Tranche issuance: 5,875,000 common shares @ $0.05 per share.
• Gross proceeds from second tranche: $293,750.
• Total gross proceeds to date (both tranches): $575,750.
• Hold period: All securities subject to a four‑month‑plus‑one‑day hold period from issuance.
• Use of proceeds: Fund exploration activities and working capital; specifically, commencement of drilling on the Tasmanian IAC rare‑earth project.
• Insider participation: Insiders purchased $200,000 worth of shares in the second tranche; transaction qualifies as a related‑party transaction under MI 61‑101 but is exempt from formal valuation/minority approval requirements (below 25% market cap threshold).
• Regulatory condition: Private placement pending final acceptance by the Canadian Securities Exchange (CSE).

Notable Quotes

“We thank our existing shareholders for their ongoing support and participation in this fundraising… Meryllion will shortly be commencing a drilling campaign at its ionic adsorption clay hosted rare earths project, located in northeastern Tasmania.” – Richard Revelins, CEO

Materiality Assessment: Non‑Material – Positive (the financing is modest relative to typical market thresholds but provides material operational funding for an exploration‑stage company).