Business
Paniai Gold Update
Paniai Gold Update.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n\n \n \n \n Paniai Gold Update\n \n \n\n \n ECR Minerals plc\n \n \n\n \n \n \n ECR MINERALS plc(“ECR Minerals”, “ECR” or the “Company”)\n \n \n AIM: ECRUS OTC: MTGDY\n \n \n PANIAI GOLD UPDATE\n \n \n London: 4 February 2011 - ECR Minerals plc is pleased to announce \n that Paniai Gold Limited (“Paniai”) has entered into a binding heads of \n agreement with West Wits Mining Limited (ASX: WWI) (“West Wits”) for the \n sale to West Wits of Paniai’s interest in the Derewo River gold project \n in Papua, Indonesia. ECR currently holds 16% of Paniai’s issued shares.\n \n \n Key terms of the sale are as follows:\n \n \n \n Consideration to Paniai of 80 million West Wits ordinary shares, 46 \n million performance shares and 12.5 million options exercisable at \n A$0.08 for 5 years\n \n \n Performance shares convert to ordinary shares subject to the Derewo \n River project achieving production of 20,000oz gold within 2 years\n \n \n Funds of A$300,000 to be made available to the Derewo River project by \n West Wits immediately\n \n \n West Wits to raise approximately A$3 million through the placement of \n 33.75 million new ordinary shares at A$0.04 (with subscribers to \n receive 1 option exercisable at A$0.08 and valid for 3 years for every \n 4 shares) combined with the placement of 33.75 million ordinary shares \n currently held by Mintails Limited at A$0.05, the proceeds of which \n will be transferred to West Wits in settlement of an existing \n obligation\n \n \n Raising of an additional A$500,000 through placement of 12.5 million \n ordinary shares with existing shareholders (with subscribers to \n receive 1 option exercisable at A$0.08 and valid for 3 years for every \n 4 shares)\n \n \n The closing price of West Wits shares on the ASX on 4 February 2011 \n was A$0.05\n \n \n \n On completion of the sale Paniai will become West Wits’ largest \n shareholder, with approximately 28% of West Wits’ issued shares \n (allowing for the financings described above) plus performance shares \n and options. Paniai will nominate two directors to the board of West \n Wits, and the locally based project team assembled by Paniai will remain \n in place.\n \n \n It is expected that Paniai will retain its interest in West Wits for the \n foreseeable future, and that Paniai will seek to identify and evaluate \n potential new projects in South E...