NEWS
RELEASE 09-09
Merit Mining Corp. to
Consolidate its Shares
September 11, 2009 ? Vancouver,
British Columbia. Merit Mining Corp. (TSX-V:MEM) reports that at
the Annual and Special General Meeting of its shareholders held today, the
shareholders approved a special resolution to alter the Company?s
authorized share structure by consolidating all of the issued and outstanding
common shares without par value, of which 217,236,456 are issued, on the basis
of up to fifty (50) pre-consolidation common shares to one (1) post-consolidation
common share. Subsequently, the
directors have determined that the proposed consolidation of commons shares
will be on the basis on fifty (50) pre-consolidation common shares to one (1)
post-consolidation share, subject to TSX Venture Exchange acceptance.
Post-consolidation, on a 50:1 basis, a
total of 4,344,729 common shares in the capital would be issued. The Company?s name will not be changed in conjunction with the
proposed consolidation.
Merit has been in serious financial
difficulty since the fall of 2008. The Company?s Greenwood Gold Project, which
went into commercial production effective June 1, 2008, had not achieved
positive cash flow by late November 2008 and the Company was unable to secure
additional financing to sustain operations. On December 3, 2008, the Company filed a
Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act (Canada). In March 2009, the Company made a
proposal to its unsecured creditors, which was approved by the unsecured
creditors on April 14, 2009 and subsequently approved by the Court effective
May 6, 2009.
The Company is continuing to focus on
re-structuring its additional debt in the form of secured convertible
debentures. In addition, the
Company will require new financing to provide working capital to move
forward. It is anticipated that the
proposed consolidation of shares will provide the Company with increased
flexibility to seek additional financing opportunities.
Merit Mining Corp.
Signed ?Fred Sveinson?
Fred Sveinson, President & CEO
For further
information please contact:
Fred Sveinson at (604) 694-2344
The
TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.