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MERIDIAN MINING (MNO.TO)

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Company description

Meridian Mining. (TSX: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 been busy with infill- and stepout drilling at Cabaçal since March 2021, and discovered several high grade gold structures at both extensions, in addition to extensive copper-gold mineralization. Metallurgical work has been ongoing in 2022 with excellent results, conforming historic production. An initial Inferred NI43-101 compliant resource for Cabaçal is planned for the end of Q3, 2022, followed by a PFS at the end of Q4, 2022. Management is looking at upgrading the nearby St Helena target (former high grade Zn-Cu mine) during H2 2022, and completing an initial Inferred NI43-101 compliant resource in Q1, 2023. At the end of 2023 a consolidated FS is planned, incorporating both Cabaçal and St Helena. The company also commenced exploring their Espigao IOCG project, located in Brazil as well, by doing gravity surveys.

Management and insiders hold about 6.0 % of outstanding shares, so there is sufficient skin in the game.

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