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Press Release
Oslo, April 16, 2007
Merit Mining Corp. options one of the largest gold and zinc properties in British
Columbia
Wega Mining ASA reports that on April 13, Merit Mining Corp. (“Merit”), a Canadian company
in which Wega Mining subject to certain conditions has agreed to obtain a majority stake, has
agreed to option the J&L Property (“J&L”), a gold-silver-zinc-lead property 35 km north of
Revelstoke, British Columbia.
The property has been subject to a number of exploration campaigns from 1983 to 1997, a
period of relatively low gold and zinc prices. A total of 21,926 meters have been drilled on the
property. Underground development is comprised of 2.0 kilometres of drifting, cross cuts and
raises with the Main Zone exposed for a distance of 0.85 kilometres along the drift.
The most extensive survey concluded with the following, historic (non NI 43-101 compliant)
resource statement:
Volume
(million
metric
tonnes)
Main Zone
Yellowjacket
Zone
Indicated
Mineral
Resource
Inferred
Mineral
Resource
Indicated
Mineral
Resource
Inferred
Mineral
Resource
Gold
(g/t)
Silver
(g/t)
Zinc
(%)
Lead
(%)
Metal
Value*
(USDm)
1.7
7.38
75.9
4.43
2.64
685
1.9
7.12
85.5
3.48
3.32
726
0.7
Nil
52.3
7.06
2.45
224
0.3
Nil
53.1
7.15
2.50
110
Gold
(000 oz)
Silver
(m oz)
Zinc
(000 mt)
Lead
(000 mt)
Metal
Value*
(USD m)
Indicated and
Inferred
4.6
838
11.1
214
133
1,745
Mineral
Resources
*Metal Value is calculated without important adjustments for recovery rate, smelter and transportation charges. It is
based on prices of USD 672/oz for gold, USD 13.9/oz for silver, USD 2000/t for lead, and USD 3550/t for zinc; all
NYMEX / LME prices on April 12, 2007.
J&L property
The metal value at today’s prices, not adjusted for recovery rates and smelting and
transportation charges, exceeds USD 1.7bn, or NOK 10bn.
Merit will pay 5 million CAD and issue 275,000 shares, currently priced at CAD 0.31, over a
period of one year from the date of TSX Venture Exchange approval, for 85% of the property.
Merit will pay CAD 100,000 and issue 125,000 shares per year until the start of production of
J&L, after which a Net Smelter Return of a maximum of 2% is payable until the seventh
anniversary of TSX Venture Exchange approval. On the seventh anniversary, Merit will pay
CAD 5.79 million, less the advance and NSR payments made up to that point, and hence
obtain full ownership of J&L. The total cost of the property for Merit will be CAD 10.79 million
plus a maximum of 1,025,000 shares.
The current owner of J&L is the Estate of the late Theodore E. Arnold, Mechanical Engineer
and inventor, of Connecticut, U. S. A.
“We are very supportive of Merit’s move to acquire this option and partial ownership. The
J&L property has the potential to create strong values for Merit’s shareholders, and will be
intensively explored over the next 12 to 15 months, in line with Wega Mining’s strategy.
Karenslyst Allé 2, Oslo
P.O. Box 568 Skøyen, N-0214 OSLO, Norway
Tlf.: +47 2316 0100
Fax: +47 2316 0109
www.wegamining.com
Merit’s management knows the property well from earlier work, and are the right people to
bring it to production,” said Lars Marius Furu, CEO of Wega Mining.
Wega Mining has agreed, subject to a 45 day Due Diligence period, to acquire 47.6 million
shares in Merit through a private placement of CAD 10 million, bringing its ownership to
53.7% of issued shares. The acquisition also includes warrants to acquire up to 29.6 million
shares during the next 12 month period.
For further information, please see the attached press release, issued by Merit on April 15.
Contact persons:
Lars Marius Furu, CEO, +47 90 188 289 (Oslo)
Tore Birkeland, Technical Director, +47 23 160 102 (Oslo)
Fred Sveinson, CEO Merit Mining, +1 604 694 2344 (Vancouver)
Wega Mining ASA, headquartered in Oslo, Norway, actively explores for gold, copper and
zinc in Guinea, Ecuador, Romania, Portugal and Norway, and currently holds 26 licences.
Through intensive exploration, a pro-active environmental strategy, access to equity capital
and a strong professional network, Wega Mining aims to develop into a leading Nordic mining
group.
Karenslyst Allé 2, Oslo
P.O. Box 568 Skøyen, N-0214 OSLO, Norway
Tlf.: +47 2316 0100
Fax: +47 2316 0109
www.wegamining.com