Ecuador Gold hires CHF Investor Relations
2014-03-13 20:25 ET - News Release
Mr. Glenn Laing reports
ECUADOR GOLD AND COPPER CORP. ENGAGES CHF INVESTOR RELATIONS, GRANTS OPTIONS
Ecuador Gold and Copper Corp. has engaged CHF Investor Relations, a highly regarded Canadian investor relations firm headquartered in Toronto, as its IR partner, pursuant to a services agreement for investor relations and market making for a term beginning on March 1, 2014, ending on Feb. 28, 2016, whereon the seventh month from the date of signature the company may terminate with 30 days notice. The services agreement is subject to TSX Venture Exchange approval.
"With a preliminary economic assessment and an updated NI 43-101 resource estimate report pending, we feel now is the opportune time to showcase our flagship Condor gold project, which already has an NI 43-101-defined indicated resource of 6,365,000 ounces of gold and a further inferred resource of 2.06 million ounces of gold. We are confident in the value inherent in this project even in today's gold market. I have worked with CHF in the past, and therefore know their abilities and reach into the investment community," commented Glenn Laing, president and chief executive oficer.
Effective March 1, 2014, the services agreement is for a term ending on Feb. 28, 2016. The services agreement may be terminated on with 30 days notice commencing on the seventh month from the date of signature. Under the terms of the services agreement, which is subject to TSX Venture Exchange approval, CHF will receive monthly fees of $7,500 and reimbursement of disbursements. CHF has been granted 500,000 Ecuador Gold stock options at an exercise price of 10 cents per share and 500,000 Ecuador Gold stock options at an exercise price of 20 cents per share. The stock options granted to CHF vest quarterly over 12 months from the date of issuance and can be exercised for a period of five years from the date of issuance. As is required for Tier 2 exchange issuers, upon termination of the services agreement, options will be cancelled after 30 days. In addition, the company has also granted 500,000 Ecuador Gold stock options pursuant to its stock option plan exercisable at price of 10 cents per share for a period of five years to its independent director, Mario Blejer, in recognition of his valuable services as an independent director.
CHF has offered its market liquidity program as a solution to clients' illiquidity issues since 2002. The market making activity will be conducted using a registered broker in compliance with Policy 3.4 of the exchange's corporate finance manual, IIROC's universal market integrity rules and policies (2010), and other relevant policies, so that trading orders in the company's shares are made to manage share price volatility and imbalances of orders in order to improve trading liquidity on the exchange.
Kroy Holdings Ltd., an Ecuador Gold shareholder, has provided 200,000 Ecuador Gold shares in initial capital for the purposes of market making in accordance with Section 2.8 of Policy 3.4 of the manual.
Prior to the grant of options outlined above, CHF had no direct or indirect interest in the company or its securities.
About CHF Investor Relations
CHF adds substantial financial and investment acumen and experience, gained since the late 1970s, to public companies as an outsourced, low-cost equivalent to an internal investor relations department. CHF serves an international portfolio of Toronto Stock Exchange-, TSX Venture Exchange- and Canadian Securities Exchange-listed companies operating in a broad range of industries, including mineral exploration and producers, oil and gas, industrial products and services, high-tech, business solutions and products, and special situations sector.
The company has not completed a preliminary economic assessment or feasibility study of the Condor gold and copper project under NI 43-101, and there is no assurance that the exploration and subsequent development operations of the Condor gold and copper project will be economically or technically viable.
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