PRZOOM - /newswire/ -
Mississauga, Ontario, Canada, 2014/11/13 - One time payment of $500,000 to acquire 10% - Expanding current production by an additional 25,000 tonnes per year to earn and additional 50% of Hallmark [TSX-V Symbol: PMR] - AvantiMac.com.
Prime Meridian Resources Corp. (“Prime” or the “Company”) is pleased to announce that in continuance of the Company’s strategic plan to build a globally integrated proppants company, it has entered into two binding letters of intent to acquire a 55% interest (fully diluted) in Hallmark Mineral (l) Pvt. Ltd. (“Hallmark”).
The first LOI allows Prime to acquire an immediate 10% percent interest (fully diluted 5%) in Hallmark for a one-time payment of CDN $500,000. The second LOI allows Prime to acquire an additional 50% interest in Hallmark by either completing capital expenditures of CDN $7 million or by expanding the production capacity of Hallmark by an additional 25,000 tonnes per year. The transactions are subject to TSX Venture Exchange acceptance.
Hallmark is located outside Pune, India about 200 km from Mumbai. The company has successfully patented, developed, produced and sold ceramic proppants in India. The current plant can produce 10,000 tonnes a year of high-quality, industry standard ceramic proppants including lightweight, intermediate strength and high strength. Hallmark has expansion plans in place to increase current plant capacity by 25,000 tonnes.
“Through the addition of Hallmark’s current intellectual property, operating plant capacity and experience personnel, this partnership is a major step in building our global proppants Company integrating all the elements in the value chain while taking a regional focus as to which type of proppant best serves the needs of each region.” stated CEO Brian Leeners.
Prime will be increasing the Company’s previously announced non-brokered private placement of up to 4.0 million units at a price of twenty-five cents per unit ($0.25) to up to 20.0 million units to raise proceeds of up to $5,000, 000. Each unit consists of one common share and one common share purchase warrant (the "Unit Warrants") with each Unit Warrant entitling the holder to acquire one additional common share at a price of 50 cents ($0.50) per share for one year from closing. The Unit Warrants are subject to the right of the Company to accelerate the exercise period for the Unit Warrants if the common shares of the Company trade above 60 cents ($0.60) for a period of 10 consecutive trading days. The proceeds of the private placement will be allocated toward general working capital purposes.
The Company may pay finders' fees on the private placement proceeds to certain parties in accordance with the policies of and subject to the approval of the TSX Venture Exchange.
On behalf of the Board of Directors of Prime Meridian Resources Corp. "Brian Leeners" - Brian Leeners, CEO & Director.