ECR is a mineral exploration and development company, incorporated in the UK.

ECR’s wholly owned Australian subsidiary Mercator Gold Australia (MGA) has agreed to acquire 100% ownership of the Avoca and Bailieston gold projects in Victoria, Australia. Mercator Gold Australia is estimated to have tax losses of approximately AUD 66M as at 30 June 2015, which may be available, subject to certain conditions (as described in ECR’s announcement dated 4 December 2014), to reduce MGA’s future taxable profits.

ECR has the right to earn a 50% interest in the Danglay epithermal gold project in the Philippines. Danglay is 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 Province, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near term production.

 

ECR shares are listed on the AIM market of the London Stock Exchange with the symbol ECR.

MERCATOR GOLD plc
(“Mercator Gold”, “Mercator” or “the Company”)

AIM: MCR

US OTC: MTGDY

 

LONDON: 17 NOVEMBER 2009

PLACING OF SHARES

Mercator Gold plc is pleased to announce the placement of 20,000,000 New Ordinary Shares in the Company to Suphansa Holdings Ltd (“Suphansa”).

The consideration for the Mercator shares is 3,000,000 shares, held by Suphansa, in Uranio AG, a Swiss company quoted on the Frankfurt, Berlin and Stuttgart stock exchanges. 3,000,000 shares in Uranio AG represent 1.33 per cent of its issued share capital. Uranio AG is an exploration and emerging mining company with headquarters in Basel, Switzerland. Its principal assets are extensive Uranium-rich exploration properties in the Central African Republic (“CAR”) and in Argentina. Uranio had gross assets of £6.6 million for the financial year to 31 December 2008.

According to a report released by Uranio on 22 October 2009 and provided by Equity Development (www.equitydevelopment.co.uk), an FSA regulated analyst company, the tenements have the potential to contain over 100,000 tonnes of Uranium. (The Uranio report may be downloaded at: http://www.uranio.ch/english/downloads.html.)

The principal shareholder of Suphansa is Mr Philip Saunders. Mr Saunders has a close association with Mr Richard Ondoko, a well-known businessman resident in the CAR and who was responsible for assisting the Uranio involvement in that country. Mercator intends to pursue jointly with Mr Saunders and Mr Ondoko other opportunities throughout Sub-Saharan Africa. Mercator will provide technical and corporate advice to Suphansa and Mr Ondoko in this effort. Suphansa has agreed to a voluntary escrow of the shares issued to it for a period of 12 months.

The Managing Director of Mercator, Mr Patrick Harford, is aware that Uranio under Richard Ondoko’s guidance has built a substantial asset in Uranium tenements across Central Africa and we look forward to assisting in the development of these and other assets.

EXERCISE OF WARRANTS

The Company also announces that pursuant to the terms of a Warrant Instrument by way of Deed Poll dated 29 May 2009, Notice of Exercise has been received for 1,846 Warrants for Ordinary Shares of 0.1p each in the Company at a subscription price of 5p each.

The Company has applied for the 20,000,000 New Ordinary Shares and 1,846 New Ordinary Shares (20,001,846 New Ordinary Shares in total) to be admitted to trading on AIM. Admission is expected to take place on 19 November 2009. The New Ordinary Shares will rank pari passu in all respects with the existing ordinary shares in the Company currently traded on AIM. Following admission there will be 144,370,442 Ordinary Shares in issue.

 

For further information please contact:

Mercator Gold plc    
Michael Silver, Chairman Tel: +44 (0)20 7929 1010
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.    
   
   
   
Bankside Consultants Ltd Tel: +44 (0)20 7367 8888
Simon Rothschild    
Oliver Winters    
   
   
   
Cenkos Securities plc    
Adrian Hargrave Tel: +44 (0)20 7397 8900
Beth McKiernan    
     
     
     
     
Old Park Lane Capital PLC    
Forbes Cutler Tel: +44 (0)20 7518 2603
Director of Corporate Broking    
     
     
     
     


Click Here for the full text PDF version of this Press Release