Vancouver’s Merit Mining Corp. (TSX-V:MEM) has closed the first tranche of a private placement with Hong Kong Huakan Investment Co. Ltd. in a move to pay down debt and further develop its B.C. holdings.
The company received an initial $9.5 million and will receive a further $6 million by the end of June.
The bulk of the proceeds is being used to repay debt and interest. Initial payments include a $355,000 payment to unsecured creditors connected with the company’s proposal under the Bankruptcy and Insolvency Act; a $4.7 million repayment of an outstanding loan to Wega Mining AS and Munday Home Sales; and $441,520 in interest to debenture holders.
The balance of the initial payment will be used to further develop the Greenwood Gold project in Greenwood, B.C. and the J&L project near Revelstoke.
Merit Mining’s share price range during the past week: between $0.90 and $0.95; 52-week high: $1.25; 52-week low: $0.165.