Private Placement Closing
Ecometals LimitedAnnounces Private Placement Closing
4/8/2011 10:43:42 AM -NFD
TORONTO, ONTARIO, Apr 8, 2011 (Marketwire via COMTEX NewsNetwork) --
Ecometals Limited (the "Company") (TSXVENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ) is announcing the closing of anon-brokered private placement for 695,000 units of securities of theCompany (each, a "Unit") at a price of CDN
.22 per Unitfor gross proceeds of CDN$152,900 (the "Offering"). EachUnit consists of one common share and one half common share purchasewarrant (each, a "Warrant"). Each Warrant will entitle theholder to purchase one common share of the Company at a price ofCDN
.40 for an 18 month period after the issuance thereof. Thesecurities issued in the Offering are subject to a four month holdperiod beginning upon their issuance. There is also an accelerationoption attached which entitles the Company to request early exerciseof the Warrants if the share price exceeds CDN
.65 in the preceding10 business days (the "Acceleration Period") within 5business days after the Acceleration Period. The gross proceeds fromthe Offering will be used for working capital purposes. The Units andWarrants issued in the Offering are subject to a four month holdperiod expiring on August 8, 2011.
In connection with the Offering, the Company has alsoissued 55,600 Units (the "Finder's Units") in lieu of acash finder's fee representing 8% of the gross proceeds raised fromthe subscribers that were introduced to the Company by GeneralResearch Gmbh ("GR"). Each Finder's Unit consists of onecommon share and one-half of one non-transferable Warrant and issubject to a four month hold period expiring on August 9, 2011.
The Company opened the Placing through a pricereservation filed with the TSXV on March 1st, 2011 conditionallyaccepted by the TSXV on April 4th, as an ancillary financingalternative to its recently announced sale of the Company'smineralised manganese material business in Brazil which at that timewas by no means clear would proceed to a joint agreement between theCompany and the Purchaser. In the event, the Company was able to moveto a conclusion on that agreement and therefore efforts to advancethe placing process were suspended early resulting in the relativelylow placement. Any information regarding the Offering should bedirected to the contact names below.
The Company also wishes to announce that it willissue to GR a total of 94,090 Units at a price of CDN
.22 per Unitto settle an outstanding debt in the amount of 15,000 Euros(CDN$20,700). When issued, such Units will fully satisfy the saiddebt and will be subject to a four month hold period.
The securities offered have not been registered underthe United States Securities Act of 1933, as amended, and may not beoffered or sold in the United States absent registration or anapplicable exemption from the registration requirements. This newsrelease shall not constitute an offer of securities for sale in theUnited States or Canada or the solicitation of an offer to buysecurities in the United States or Canada, nor shall there be anysale of the securities in any jurisdiction or state in which suchoffer, solicitation or sale would be unlawful.
About Ecometals
Ecometals Limited is a Canadian-listed mineralexploration and development company focused on mineral resources inLatin America.
SOURCE: Ecometals Limited
Investors: William Lamarque Chief Executive Officerwglamarque@ecometalslimited.com Andrew Robertson Chief FinancialOfficer andrewrobertson@ecometalslimited.com Information: Enquiries:info@ecometalslimited.com URL: www.ecometalslimited.com
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