This is the ONLY reason for the dropThere is NO news-leak.
JUST profit-taking by some investors who took part at the private placement.
All this lies by basher here are to just scare you out and they are currently buying the shares from those pp-participants. So nothing about bad news or other blabla, simply profit taking. Nothing more, nothing less. So really nothing to be scared.
Ecometals completes first tranche for $2-million
2009-10-09 18:03 ET - News Release
Mr. Daniel Major reports
ECOMETALS LIMITED ANNOUNCES PRIVATE PLACEMENT FINANCING
Ecometals Ltd. has closed the first tranche of a non-brokeredprivate placement for up to 15,789,473 units at a price of 38 cents perunit for gross proceeds of up to $6-million. A total of 5,269,316 unitswere sold in this first tranche for gross proceeds of $2,002,340. Eachunit comprises one common share and one-half of one common sharepurchase warrant (each whole common share purchase warrant). Eachwarrant entitles the holder to purchase one common share of the companyat a price of 65 cents for a 24-month period, subject to the followingacceleration rights. If at any time prior to the expiry date of thewarrants, the closing price of the company's common shares is above 90cents per share for 20 or more consecutive trading days, the companymay give notice accelerating the expiry date of the warrants to 30 daysfollowing the date of such notice. The company may issue additionalsecurities representing the balance of the offering (or a portionthereof) prior to Oct. 26, 2009. The securities issued in this firsttranche are subject to a four-month hold period expiring on Feb. 10,2010.
Gross proceeds from the offering are expected to be used tofinance the Rio Zarza project's drilling costs, repayment ofoutstanding debt and for general corporate purposes.
The company will be paying finder's fees representing 6 percent of the gross proceeds raised from subscribers introduced to thecompany by its finders General Research GmbH and RK Equity CapitalMarkets LLC. The fees will be satisfied by a combination of cash andthe issuance of units at the placement price.
We seek Safe Harbor.