Electrum Raises £300,000 Through SEDA With YA Global

Electrum Resources plc, the diversified mineral and renewable energy development company, announces that it has drawn down on its Standby Equity Distribution Agreement (“SEDA”) with YA Global Master SPV, Ltd. (“YA Global”) in the amount of £300,000 (the “Drawdown”). Details and certain conditions pursuant to the SEDA were notified by the Company on 19 April 2010.

The proceeds of the Drawdown will be applied primarily for the Company’s planned gold exploration activities in Argentina and for general working capital purposes.

The SEDA is an equity financing mechanism that has been implemented by numerous companies listed on AIM and other international exchanges. Under the SEDA, YA Global has agreed to purchase up to a maximum of £4 million worth of ordinary shares of 0.1 pence par value in the Company (“Shares”), subject to certain conditions and limitations. YA Global is advised by Yorkville Advisors, LLC (“Yorkville”), an investment manager headquartered in Jersey City, New Jersey, USA. Yorkville operates in the United Kingdom through its affiliated entity Yorkville Advisors UK LLP, which is authorised and regulated by the FSA.

A total of 27,576,178 Shares have been issued to YA Global in respect of the Drawdown at an average of 1.0878 pence per Share.

Certain fees payable to YA Global in respect of the implementation of the SEDA have been satisfied by the issue of 3,051,369 Shares at an average price of 1.3109 pence per Share, which completes the payment of these fees.

Certain other fees payable in respect of the introduction of YA Global and Electrum have been satisfied by the issue of 2,034,246 Shares at an average price of 1.3109 pence per Share, which completes the payment of these fees.

A further 3,780,488 Shares at 0.82 pence per Share, 1,865,455 Shares at 1.1 pence per Share and 2,500,000 Shares as an agreed success fee have been issued to two parties in satisfaction of advisory fees unconnected with the SEDA, and a further 187,466 Shares have been issued at 0.8 pence per Share in settlement of convertible loan note interest.

Pursuant to this announcement application has been made for a total of 40,995,202 Shares to be admitted to trading on AIM. Dealings are expected to commence on 26 October 2010. Following admission of these shares the Company will have a total of 372,750,639 Shares in issue.

 

For further information please contact:

Electrum Resources plc
Michael Silver, Chairman Tel: +44 (0) 20 7929 1010
Patrick Harford, Managing Director
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
Daniel Stewart & Company plc
Oliver Rigby/Tessa Smith Tel: +44 (0) 20 7776 6550
Old Park Lane Capital plc
Forbes Cutler Tel: +44 (0) 20 7518 2603
Director of Corporate Broking
Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888
Simon Rothschild
Barry Kaplan Associates
Larry Kaplan Tel: +1 732 747 0702