Gold-copper explorer Meridian plans London listing

Explorer Meridian Mining (TSX: MNO) is planning to list on the London Stock Exchange’s main market this week as it works to advance its flagship Cabaçal gold-copper project in Brazil.

The London-based company has applied for admission of its shares to the UK Financial Conduct Authority’s Official List, with trading expected to begin May 1 under the ticker MNO, according to a statement Monday. The listing will be accompanied by an institutional share sale and a retail offering priced at 92 pence apiece, representing a 5.6% discount to Meridian’s last closing price on the Toronto Stock Exchange.

Meridian said the dual listing is intended to broaden its investor base and improve liquidity, including potential eligibility for inclusion in the FTSE UK Index Series. The shares will be fully fungible between the London and Toronto exchanges, enabling access for both North American and European investors.

Net proceeds from the offering are expected to be about £25 million ($33.8 million), Meridian said. Combined with existing cash of £55.1 million, they will be directed toward development activities at Cabaçal. Planned spending includes long-lead equipment, infrastructure, civil works and general corporate costs as the project advances toward a construction decision.

The offering will consist of a placement to institutional investors of about £22.5 million, along with a retail sale of up to £2.5 million through UK investment platforms.

Admission remains subject to regulatory approvals, including from the TSX. Meridian has agreed to a 90-day lock-up period following the listing.

Advanced stage

Meridian is focused on developing gold-copper assets in Brazil, led by its advanced-stage Cabaçal project in Mato Grosso state. 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 $984 million at a 5% discount rate and a post-tax internal rate of return of about 61%. Initial capital costs are estimated at $248 million, with payback projected in roughly 17 months.

The study envisions average annual production of 141,000 gold-equivalent oz. over a 10-year mine life at all-in sustaining costs of $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.

Meridian’s shares fell 3.9% to C$1.73 each Monday morning in Toronto, valuing the company at about C$793 million ($583 million).