Vancouver, BC and Oslo, Norway – February 5, 2008. Merit Mining Corp. (TSX-V: MEM) (“Merit Mining” or the “Company”) and Wega Mining ASA (OAX: WEMI) (“Wega Mining”) are pleased to announce that today Merit Mining completed a private placement of an aggregate of 31,100,000 units priced at $0.20 per unit to certain of its employees and existing shareholders, for total proceeds of $6,220,000, as previously announced on January 21, 2008.
Each unit is comprised of one common share and one-half of a warrant. Each whole warrant is exercisable to acquire one common share of Merit Mining on or before February 6, 2009, at an exercise price of $0.30 per common share.
Securities issued pursuant to the private placement are subject to a four month hold period until June 6, 2008.
Proceeds of the private placement will be used by the Company to complete the construction and development of the Greenwood mill and Lexington-Grenoble mine and for general working capital.
Wega Mining, the largest shareholder of Merit Mining, subscribed for 21,964,000 units under the private placement for a total purchase price of $4,392,800. As a result of its subscription, Wega Mining now owns 105,946,683 common shares of the Company, representing approximately 58.6% of the issued and outstanding common shares, and 76,988,493 warrants, entitling it to acquire an aggregate of up to 76,988,493 additional common shares. Assuming the exercise of all of the outstanding warrants and options of Merit Mining, including the warrants held by Wega Mining, Wega Mining would own 182,935,176 common shares of Merit Mining, representing approximately 65.5% of the common shares on a fully diluted basis (excluding the outstanding Merit Mining convertible debentures).
Wega Mining is an Oslo-based international mining company focused on exploring, developing and operating gold, copper and zinc deposits. It currently operates in Guinea, Burkina Faso, Mali, Canada, Portugal, Ecuador, Romania and Norway. Wega Mining trades on Oslo Axess, an exchange regulated by the Oslo Stock Exchange. Further information can be accessed at www.wegamining.com. Wega Mining has acquired the units for investment purposes. Its investment in Merit Mining will be reviewed on a continuing basis and its holdings of securities in Merit Mining may be increased or decreased in the future.
For further information please contact:
Fred Sveinson, President & CEO
Merit Mining Corp. at (604) 694-2344
Sverre Slåttsveen, CFO
Wega Mining ASA at + 47 45411950
For Investor Relations information contact:
MarketSmart at (604) 261-4466 or 1-877-261-4466
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.