Business
Proposed Subscription, Proposed Issue of Warrants and Issue of Equity
Proposed Subscription, Proposed Issue of Warrants and Issue of Equity.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n\n \n \n \n Proposed Subscription, Proposed Issue of Warrants and Issue of Equity\n \n \n\n \n ECR Minerals plc\n \n \n\n \n \n \n AIM: ECR\n \n \n US OTC: MTGDY\n \n \n ECR MINERALS plc (“ECR Minerals”, “ECR” or the “Company”)\n \n PROPOSED SUBSCRIPTION BY CHINESE INVESTOR TO RAISE £0.55 MILLION PROPOSED \n ISSUE OF WARRANTS AND ISSUE OF EQUITY\n \n \n LONDON: 27 FEBRUARY 2017 - The directors of ECR Minerals plc (the \n “Directors”) are pleased to announce that the Company has conditionally \n raised gross proceeds of £553,564 (“Gross Proceeds”) pursuant to a \n subscription by the Shenyang Xinliaoan Machinery Co Ltd (“Shenyang” or \n the “Investor”) based in the People’s Republic of China, for 55,356,391 \n new ordinary shares of the Company (“Subscription Shares”) at a price of \n 1 pence per Subscription Share (“Subscription Price”) (the \n “Subscription”). Conditional on completion of the Subscription, the \n Investor will also be issued warrants over 83,034,586 new ordinary \n shares in total (the “Investor Warrants”). Of the Investor Warrants, \n 55,356,391 are exercisable at a price of 2 pence per share and \n 27,678,195 have an exercise price of 5 pence per share.\n \n \n HIGHLIGHTS\n \n \n \n Shenyang Xinliaoan Machinery Co Ltd has conditionally agreed to \n subscribe for a 29.9% shareholding in ECR\n \n \n Shenyang Subscription Shares to be subject to 12-month lock-up\n \n \n £100,000 non-refundable deposit receivable from the Investor, to be \n converted into ordinary shares at a price of 2p per share in the event \n the conditions of the Subscription are not satisfied by 31 March 2017\n \n \n Proceeds to be used for drilling programmes in Australia and Argentina \n and working capital including review of potential new projects and \n business areas\n \n \n Upon completion of the Subscription, Shenyang are able to recommend up \n to two directors who may be appointed as members of the ECR board\n \n \n Issue of shares to directors, consultants and suppliers who have opted \n to take ECR shares in lieu of fees owed\n \n \n \n Craig Brown, CEO of ECR, commented:\n \n \n “We are delighted to welcome Shenyang Xinliaoan Machinery Co Ltd as an \n investor in ECR. One of the principal challenges faced by companies such \n as ECR is in securing investors who are prepared to take a longer term \n view. We believe the fact t...