Business
Issue of Equity/Placing
Issue of Equity/Placing.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n RNS Number : 8157L Mercator Gold PLC 12 May 2010 \n\n \n \n \nMERCATOR GOLD plc\n(\"Mercator\" or \"the Company\")\n \nAIM: MCR\nUS OTC: MTGDY\n \nPlacing of up to 120 Million New Ordinary Shares at 1p to \nRaise up to £1.2 Million \n \nMercator Gold plc, the diversified mineral development company, is pleased to announce a placing (\"the Placing\") of up to 120 million new ordinary shares of 0.1p each (\"the Placing Shares\") at a price of 1p per share to raise up to £1.2 million before costs. \n \nDaniel Stewart & Company plc, nominated adviser and co-broker to Mercator, acted with Old Park Lane Capital plc, co-broker to the Company, in the Placing, which is conditional upon, inter alia, admission of the Placing Shares to trading on AIM. \n \nApplication has been made for the admission of the Placing Shares to AIM effective 18 May 2010, following which the Company will have 289,250,562 ordinary shares in issue. The Placing Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM. \n \nIssue of Warrants\n \nIn addition, the Company will grant up to 22 million warrants to placees in the placing announced on 15 March 2010. Each warrant shall be exercisable to acquire one new ordinary share of the Company at a price of 1p per share for up to 12 months.\n \nUse of Proceeds\n \nThe net proceeds of the Placing will enable the Company to continue implementing its stated strategy of adding, and where appropriate, realising value from its existing portfolio of assets whilst taking advantage of new opportunities as they arise.\n \nThe directors caution that in view of the convertible loan notes redeemable in October 2010, the proceeds of the Placing may not be sufficient to provide the Company with working capital for the next 12 months. It may be necessary for further capital to be raised during 2010, and there can be no certainty as to whether such capital will be available or as to the price at which it may be available. \n \nHowever, the working capital position of the Company may be strengthened by the sale of assets, and potential means by which the convertible loan notes may be refinanced are being investigated. \n \nThe Company has also entered into a Standby Equity Distribution Agreemen...