NEWS RELEASE 10-08
Merit Mining Corp. Closes Second Tranche of $15.5 Million Private Placement with Hong Kong Huakan Investment Co., Limited
June 29, 2010 ? Vancouver, British Columbia. Merit Mining Corp. (TSX-V: MEM) (the ?Company?) has closed the second tranche of a previously announced private placement by the Company to Hong Kong Huakan Investment Co., Limited (?Huakan?). The second tranche is comprised of 8,955,223 common shares, priced at $0.67 per share, for gross proceeds of $6,000,000. A finder?s fee, comprised of a cash payment of $120,000 and 89,552 common shares of the Company, has been paid. In addition, a finder?s warrant has been issued for 447,761 common shares, exercisable on or before June 29, 2011, at an exercise price of $0.67 per share. All securities issued pursuant to the second tranche of the private placement are subject to a four month hold period until October 30, 2010.
Proceeds of the second tranche will be used to advance the Greenwood Gold project, located near Greenwood, BC and the J&L project, located near Revelstoke, BC, and for general corporate purposes.
At the Annual General Meeting of Shareholders of Merit to be held on June 30, 2010, a third nominee of Huakan will be proposed for election to the board of directors.
The Company also reports today that, in connection with its previously announced proposal under the Bankruptcy and Insolvency Act (Canada), Abakhan & Associates Ltd., the Trustee under the proposal, has issued a Certificate of Full Performance of Proposal to the Company, confirming that the proposal has been fully performed.
Merit Mining Corp.
Signed ?Fred Sveinson?
Fred Sveinson, President & CEO
For further information please contact:
Fred Sveinson at (604) 694-2344
Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION
Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to, statements concerning: the disclosed use of proceeds. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as ?plans?, ?expects?, ?is expected?, ?budget?, ?scheduled?, ?estimates?, ?forecasts?, ?intends?, ?anticipates?, or ?believes? or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results ?may?, ?could?, ?would?, ?might? or ?will? be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions, history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company?s business contained in the Company?s reports filed with the securities regulatory authorities in Canada.