NEWS RELEASE 08-22
Merit
Mining Announces First Closing of Convertible Debenture
July 21, 2008 ? Vancouver,
British Columbia.
Merit Mining Corp. reports it has completed the first closing of the $5,000,000
private placement offering of three year convertible debentures (the
?Debentures?) previously announced on June 25, 2008. In the first closing, the Company has
completed the issuance of Debentures in the principal amount of $3,246,000 to
subscribers resident in the Provinces of Manitoba and Saskatchewan.
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, British
Columbia and its J&L Project near Revelstoke,
British Columbia, where a major
underground development and exploration program is underway, as well as for
working capital purposes.
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 from the date of
closing of July 21, 2008. Interest
may be paid 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 less 10%; and
3) the last
closing price prior to the news release announcing the conversion of interest
to shares.
all subject to the requirements of the TSX-V.
The Debentures will
be fully secured by a call on future gold production of the Company.
All securities to
be issued on conversion of the Debentures will be subject to a four month hold
until November 21, 2008 or a 12 month hold until July 21, 2009 if the holder is a resident of the Province
of Manitoba or a person to whom the laws of the Province of Manitoba extends.
Jory Capital Inc.
of Winnipeg, Manitoba
assisted the Company with respect to the offering and has been paid a fee of 5%
of the total subscription proceeds received.
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.