TIDMECR
AIM: ECRUS OTC: MTGDY
ECR MINERALS plc("ECR" or the "Company")
SUBSCRIPTION FOR SHARES
ISSUE OF EQUITY AND GRANT OF WARRANTS
APPOINTMENT OF JOINT BROKER
LONDON: 6 SEPTEMBER 2016 - The directors of ECR Minerals plc
(the "Board") are pleased to announce that it has raised gross
proceeds of GBP500,000 by way of a subscription (the
"Subscription") for 10,000,000,000 new ordinary shares in the
Company of 0.001 pence (the "Subscription Shares") at a price of
0.005 pence each.
The net proceeds of the Subscription of GBP475,000, which is
only conditional on admission of the Subscription Shares to trading
on AIM, will be used for future general working capital purposes,
to support the ongoing activities of the Company in Australia and
to look at new opportunities.
The current cash in the Company prior to receipt of the proceeds
in the placing will be used to repay existing trade creditors and
repay in full all amounts owed by the Company under the convertible
loan facility (the "Facility") in place with YA II PN Ltd (formerly
known as YA Global Master SPV Ltd), an investment fund managed by
Yorkville Advisors Global LP.
Optiva Securities Ltd ("Optiva") acted for the Company in the
Placing. Optiva has been appointed joint broker to the Company with
immediate effect.
Craig Brown, Chief Executive Officer of ECR, commented:
"The Subscription, which was over-subscribed by 15%, is an
encouraging vote of confidence in ECR's future. This will enable
the Board to use its technical strengths and expertise to maximise
the value of the Company's existing assets whilst evaluating
further new business opportunities."
Admission of Subscription Shares to AIM
Pursuant to the Subscription, application has been made for the
Subscription Shares to be admitted to trading on AIM. This is
expected to occur on or around 20 September 2016. Following
admission of the Subscription Shares and the new ordinary shares
issued pursuant to the loan conversion which was announced on 2
September 2016, ECR's issued ordinary share capital will comprise
23,429,750,820 ordinary shares of 0.001 pence. This number
represents the total voting rights in the Company and may be used
by shareholders as the denominator for the calculation by which
they can determine if they are required to notify their interest
in, or a change to their interest in, the Company under the
Financial Conduct Authority's Disclosure and Transparency Rules.
The Subscription Shares will rank pari passu in all respects with
the ordinary shares of the Company currently traded on AIM.
Grant of Warrants
Under the terms of the appointment of Optiva as joint broker to
ECR, the Company has agreed to grant to Optiva the following
warrants.
a) 400,000,000 warrants exercisable at 0.005 pence, exercisable
immediately;
b) a further 500,000,000 warrants exercisable at 0.005 pence,
vesting on completion of the Subscription;
c) 200,000,000 warrants exercisable at 0.01 pence, vesting if
the ECR share price trades above 0.01 pence for twenty consecutive
trading days;
d) a further 133,333,333 warrants exercisable at 0.015 pence,
vesting if the ECR share price trades above 0.015 pence for twenty
consecutive trading days.
Each warrant will entitle Optiva to subscribe for one ordinary
share of 0.001 pence at the specified exercise price and will be
exercisable for three years.
Market Abuse Regulations (EU) No. 596/2014
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
ABOUT ECR
ECR is a mineral exploration and development company. ECR's
wholly owned Australian subsidiary Mercator Gold Australia has
acquired 100% ownership of the Avoca and Bailieston gold projects
in Victoria, Australia. ECR has earned a 25% interest in the
Danglay epithermal gold project, an advanced exploration project
located in a prolific gold and copper mining district in the north
of the Philippines. An NI43-101 technical report was completed in
respect of the Danglay project in December 2015, and is available
for download from ECR's website.
ECR's wholly owned subsidiary Ochre Mining has a 100% interest
in the SLM gold project in La Rioja, Argentina. Exploration at SLM
has focused on identifying small tonnage mesothermal gold deposits
which may be suitable for relatively near term production.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc Tel: +44 (0)20 7929 1010
William (Bill) Howell, Non-Executive Chairman
Craig Brown, Director & CEO
Richard (Dick) Watts, Non-Executive
Technical Director
Email: info@ecrminerals.com
Website: www.ecrminerals.com
Cairn Financial Advisers LLP Tel: +44 (0)20 7148 7900
Nominated Adviser
Emma Earl / Jo Turner
Optiva Securities Ltd Tel: +44 (0)20 3137 1902
Joint Broker
Christian Dennis
Vicarage Capital Ltd Tel: +44 (0)20 3651 2910
Joint Broker
Rupert Williams / Jeremy Woodgate
Blytheweigh Tel: +44 (0)20 7138 3204
Public Relations
Tim Blythe / Camilla Horsfall
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such
statements may be subject to a number of known and unknown risks,
uncertainties and other factors that could cause actual results or
events to differ materially from current expectations. There can be
no assurance that such statements will prove to be accurate and
therefore actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward looking statements. Any
forward looking statements contained herein speak only as of the
date hereof (unless stated otherwise) and, except as may be
required by applicable laws or regulations (including the AIM Rules
for Companies), the Company disclaims any obligation to update or
modify such forward looking statements as a result of new
information, future events or for any other reason.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160905005617/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
September 06, 2016 02:00 ET (06:00 GMT)
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