June 25, 2008 – Vancouver, British Columbia. Merit Mining Corp. reports that it has arranged a convertible debenture financing of up to $5.0 million. 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 out in cash or shares at the option of the holder.
Should the holders 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 and
3) the closing price of the shares on the date of the news release disclosing issuance of the debentures, as per TSX Venture Exchange policy.
The debentures will be fully secured by a call on future gold production of the Company.
The Company will pay a finder’s fee of 5% of the subscription proceeds received from subscribers introduced to the Company by Jory Capital Inc. and other third parties.
The convertible debenture financing is subject to acceptance for filing by the TSX Venture Exchange. All securities to be issued on conversion of the debentures will be subject to a four month hold or as required by applicable securities laws.
Proceeds of the private placement will be used by the Company to further develop the Company’s Greenwood Gold Project currently in production in Greenwood, BC and its J&L Project near Revelstoke, BC as well as for working capital purposes.
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.