NEWS RELEASE 08-21
Merit
Mining Arranges Convertible Debenture of up to $5.0 Million
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.