Meridian Minerals has completed a capital raising of $710,000 to accelerate the company’s advanced project assessment program.
According to Meridian managing director, Jeremy Read, the funds raised will allow the company to complete final due diligence on a number of advanced projects, with the goal of concluding an acquisition of a suitable project in the near term.
“The Company’s strategy has been to identify advanced projects for acquisition which have the potential to deliver cash flows both in the short and medium-term,” he said.
“Meridian has been conserving its cash in recent months by focussing on desk top assessments of over 30 projects and we are now in position to undertake due diligence on the projects which we have identified as having the most potential.”
According to Read, funds will also be allocated to complete a one hole drill program to test the Ashes copper-gold geochemical and geophysical anomaly on the North Parkes exploration licence.
“These weakened market conditions present an unprecedented opportunity to acquire high quality projects and substantially value-add via the application of knowledge and experience.”
The placement comprises a total issue of 35,500,000 new ordinary shares at $0.02 per share to clients of Armada Capital (25,000,000 shares) and Sophisticated and Professional Investors (10,500,000 shares).
A total of 9,568,000 shares will be issued immediately.
According to the company, shareholder approval for the issue of the remaining shares will be sought at a general meeting to be held on 5 May 2009.