Meridian Mining Seeks New Capital to Propel Cabaçal Gold-Copper Project Forward
Unlocking Strategic Growth for Cabaçal and Beyond
Funding Strategic Growth
Meridian Mining is actively seeking to raise capital to fuel key initiatives designed to advance its Cabaçal Au-Cu project in Mato Grosso, Brazil. The company plans to deploy the proceeds across several critical areas that are expected to significantly boost its operations and regional exploration.
Allocation of Funds
- Cabaçal Definitive Feasibility Study (DFS): A major portion of the funds will be directed toward completing the definitive feasibility study for the Cabaçal project. This study will provide in-depth insights into the economic and technical aspects of the project, laying the foundation for its development.
- Santa Helena Resource Definition: Meridian intends to accelerate the development of its Santa Helena project, a key asset in the broader Cabaçal Hub strategy. This includes advancing to the resource definition phase of the high-grade VMS deposit, which is positioned as a cornerstone of future growth.
- Regional Exploration Expansion: A significant portion of the capital will be allocated to exploring new mineralized zones within the Cabaçal VMS Belt. This exploration is aimed at broadening the company's resource base and expanding its Cabaçal Hub strategy.
- General Operations: Some of the proceeds will be used for corporate and administration costs, ensuring seamless day-to-day operations and strengthening the company's financial position.
Offering Details and Compliance
The private placement is slated to close around August 7, 2025, pending the usual conditions, including regulatory approvals such as the Toronto Stock Exchange's conditional approval.
The offering will be available to investors across all Canadian provinces and territories, excluding Quebec. The sale will occur under the Listed Issuer Financing Exemption, in accordance with National Instrument 45-106 – Prospectus Exemptions ("NI 45-106") and the Coordinated Blanket Order 45-935. Notably, shares issued under this exemption will not be subject to a hold period under Canadian securities laws.
Interested investors should review the offering document dated July 24, 2025. The document is accessible on SEDAR+ and Meridian Mining's official website at meridianmining.co.
Important Note for U.S. Investors
This announcement does not constitute an offer or solicitation to sell securities within the United States. The securities have not been, and will not be, registered under the U.S. Securities Act of 1933 or any U.S. state securities laws. They cannot be offered or sold within the U.S. unless properly registered or exempt under applicable laws.
About Meridian Mining and the Cabaçal Project
Meridian Mining is focused on advancing its Cabaçal VMS gold-copper project in the State of Mato Grosso, Brazil. The company also aims to further define resources at its high-grade Santa Helena asset, alongside expanding its regional exploration within the Cabaçal VMS Belt and the Jaurú & Araputanga Greenstone belts.
The Pre-feasibility Study (PFS) for the Cabaçal project, dated March 31, 2025, showcases robust financials and an attractive development profile:
- After-tax NPV5: USD 984 million
- Internal Rate of Return (IRR): 61.2%
- Pre-production Capital Cost: USD 248 million
- Capital Repayment Period: Expected within 17 months
- Assumed Metal Prices:
- Gold: USD 2,119/oz
- Copper: USD 4.16/lb
- Silver: USD 26.89/oz
- All-in Sustaining Cost (AISC): USD 742 per ounce gold equivalent
- Production Profile: 141,000 ounces gold equivalent over the life of the mine
These positive metrics are driven by high metallurgical recovery rates, low strip ratios (2.3:1), and Brazil's favorable operating cost environment.
The Cabaçal Mineral Reserve estimate includes:
- Proven & Probable Reserves: 41.7 million tonnes at:
- 0.63g/t gold
- 0.44% copper
- 1.64g/t silver (at a 0.25g/t gold equivalent cut-off grade)
This PFS was prepared by Ausenco Engineering Canada ULC, GE21 Consultoria Mineral, and Flowsheets Metallurgical Consulting Inc., and is available for review on SEDAR+ and Meridian Mining's website.
The Road Ahead for Cabaçal
Meridian Mining’s push to secure fresh capital underscores the company's commitment to advancing its flagship project and further solidifying its position within Brazil's growing mining sector. The investment will enable Meridian to move forward with critical technical studies, exploration, and resource development—factors that are expected to drive the Cabaçal project into the next phase of growth.
How do you think the infusion of capital will affect the timeline and development of the Cabaçal gold-copper project? Let us know your thoughts!
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