Meridian Mining (MNO.V)

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Company description

Meridian Mining. (TSXV:MNO) is a mineral exploration company based in London, UK, with an office in Vancouver, Canada. The company is focused on acquisition, exploration and development activities in Brazil. Their flagship project is the Cabacal copper-gold project in the state of Mato Grosso. Meridian also owns in the neighboring state of Rondônia the Espigao Cu-Au polymetallic project, the Mirante da Serra manganese project, and the Ariquemes tin portfolio..

The company has undergone a complete overhaul, after the toiling manganese producing operation racked up more and more debt, instead of generating positive cash flow. Major shareholder at the time Sentient Global Resource Fund FIV, who owned 85% of outstanding shares, sent in then-Partner Gilbert Clark to clean things up. After everything was done and dusted, Sentient only owned 10% of equity, the company was debt free and cashed up, management was changed and the manganese project was put on care and maintenance, and most importantly the Cabaçal project was acquired, in order to profit from the increased gold and copper prices. By March 2021 the legacy Sentient shareholders and their overhang were crossed to long term new investors.

As Gilbert Clark was paramount to the turnaround, he was promoted to Executive Chairman after he decided to leave Sentient, as he wanted something different and saw a vast opportunity with Meridian, and as he has probably one of the most high profile rolodexes in the mining industry, he is involved in everything ranging from financings to assets to marketing for Meridian at the moment. In addition, Adrian McArthur is the CEO, who holds a PhD in geology, and has extensive experience in exploration in Brazil.

The 100% owned flagship project Cabaçal  includes  the former BP Minerals/Rio Tinto Cabaçal Copper-Gold mine and the St Helena zinc mine in the Mato Grosso state Brazil which are part of a district scale VMS cluster. The Cabaçal project sports a historic 21.7Mt @0.6% Cu & 0.6g/t Au resource. The deposit is located near surface, and is shallow dipping, and as such is open pittable. Mineralization is open in all directions. Management has commenced its exploration at Cabaçal with drilling planned to start during the 2nd week of March 2021. An initial Inferred NI43-101 compliant resource is planned for the beginning of Q4, 2021. For their other project Espigão, a more early stage reconnaissance exploration program is planned for this year.

Their cash position (February 2021) stands at C$5.1M. Management and insiders hold about 6.0 % of outstanding shares, so there is sufficient skin in the game.

Share price Meridian Mining: