NEWS RELEASE 08-24
Merit
Mining Announces Final Closing of Convertible Debentures
August 15, 2008 ? Vancouver,
British Columbia.
Merit Mining Corp. (TSX-V: MEM) reports that it has closed the $5,000,000 private
placement offering (the ?Offering?) of three year convertible debentures (the
?Debentures?) previously announced on June 25, 2008.
At the final closing, the Company sold Debentures in
the principal amount of $164,000 to subscribers resident in the Provinces of
Alberta and Saskatchewan. The principal amount of Debentures
sold at the second closing reported on August 5, 2008 has been reduced by
$30,000 to $1,060,000. Therefore,
the Company has sold pursuant to the Offering, Debentures in the total
principal amount of $4,470,000.
Proceeds of
the Offering will be used by the Company to further develop the Company?s
Greenwood Gold Project, currently in production in Greenwood,
British Columbia, for ongoing exploration at
its J&L Project near Revelstoke,
British Columbia, and for working
capital purposes.
The Debentures
will mature in three years, with interest payable annually at 10%. The principal amount of the Debentures
will be convertible into shares of the Company at $0.27 in the first year,
$0.35 in the second year and $0.40 in the third year.
Interest may
be paid in cash or shares at the option of the holder. Should a holder of the Debentures elect
to receive the 10% annual interest payment in shares instead of cash, the share
price used to determine the number of shares granted will be the greater of:
1)
the applicable
conversion price for the year in question, less 10%;
2)
the weighted average
daily market price of the shares for the previous 20 trading days prior to the
interest payment date less 10%; and
3)
the last
closing price prior to the news release announcing the conversion of interest
to shares,
all subject to the requirements of the TSX-V.
The
Debentures will be fully secured by a call on future gold production of the
Company.
All common
shares of the Company to be issued on conversion of the Debentures issued
pursuant to the final closing will be subject to a 4 month hold until December
16, 2008 or subject to a 12 month hold until August 15, 2009 if the holder is a resident of the Province
of Manitoba or a person to whom the laws of the Province of Manitoba extends.
Jory
Capital Inc. of Winnipeg, Manitoba
assisted the Company with respect to the Offering and has been paid a fee of 5%
of the total subscription proceeds.
Merit
Mining Corp.
Signed ?Fred
Sveinson?
Fred Sveinson, President & CEO
For further information
please contact:
Fred Sveinson at (604)
694-2344
For Investor
Relations Information Contact:
MarketSmart
Communications (604) 261-4466
(Toll Free 1-877-261-4466)
The TSX
Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
The statements made in this News Release may contain certain
forward-looking statements. Actual
events or results may differ from the Company?s expectations. Certain risk factors may also affect the
actual results achieved by the Company.