Meridian raises $34M in London market debut

Meridian Mining (TSX: MNO) (LON: MNO) began trading in London after raising £25 million ($34 million), positioning itself for potential inclusion in major UK equity indices.

The company, focused on its Cabacal 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 Cabacal, an advanced-stage volcanogenic massive sulphide deposit in Brazil’s Mato Grosso that anchors Meridian’s strategy to build a scalable gold-copper platform in the South american country. 

Pre-feasibility work points to a high-margin project with a 10-year mine life, targeting annual production of 141,000 gold-equivalent ounces and a post-tax internal rate of return of about 61%, as the company advances toward a definitive feasibility study and construction.