Meridian Mining (TSX, LSE: MNO) began trading in London after raising £25 million ($34 million), positioning itself for potential inclusion in major U.K. equity indices.
The company, focused on its Cabaçal gold-copper project in Brazil, completed a placing alongside a £2.5-million retail offer of 2.7 million shares at 92p each. Shares were last quoted at 94.70p on London’s Main Market, where it now trades in the Equity Shares (Commercial Companies) category.
Meridian said it is targeting inclusion in the FTSE All-Share index at the next rebalancing. It also aims to join the FTSE 250, which tracks the 101st to 350th largest companies on the London Stock Exchange, within 12 months, subject to approval.
The listing expands Meridian’s market presence beyond Toronto, New York’s OTC market and Frankfurt, where its shares showed mixed performance. In Canada, the stock rose 2.4% to C$1.75 on Thursday, implying a market capitalization of about C$802 million (£434 million).
The London debut and capital raise support development of Cabaçal, an advanced-stage volcanogenic massive sulphide deposit in Brazil’s Mato Grosso state that anchors Meridian’s strategy to build a scalable gold-copper platform in the South American country.
Rio Tinto-linked
The deposit was previously mined on a small scale by BP Minerals and Rio Tinto (ASX, LSE, NYSE: RIO) subsidiaries in the 1980s and 1990s and is now being re-developed as an open-pit operation. Cabaçal is about 1,700 km northwest of Rio de Janeiro.
A 2025 prefeasibility study outlined robust economics, including a net present value of US$984 million at a 5% discount rate and a post-tax internal rate of return of about 61%. Initial capital costs are estimated at US$248 million, with payback projected in roughly 17 months.
10-year life
The study envisions average annual production of 141,000 gold-equivalent oz. over a 10-year mine life at all-in sustaining costs of US$742 per ounce. The shallow nature of the mineralization and favourable strip ratio are expected to support technically simple, fast and profitable mining.
Permitting is well advanced, with a key preliminary licence granted in 2025. Meridian is targeting completion of a definitive feasibility study in this year’s fourth quarter, followed by a final investment decision.
Beyond its flagship project, the company is pursuing a broader hub-and-spoke strategy across the Cabaçal volcanic massive sulphide belt. Exploration is ongoing across a 50-km trend, with the Santa Helena deposit identified as the next priority for drilling and development studies. Regional programs are also generating targets across adjacent greenstone belts, the company says.
Be the first to comment on "Meridian raises $34M in London market debut"