Business
Re: Sale of Non-Core Assets
Re: Sale of Non-Core Assets.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n Mercator Gold PLC\n25 April 2008\n\n\n Mercator Gold plc\n\n ('Mercator Gold', 'Mercator' or 'the Company')\n\n AIM: MCR\n\n\n Sale of Non-Core Assets to Silver Swan Group\n\n\n • Sale of non-core exploration tenements to ASX-listed Silver Swan Group\n approved by Silver Swan shareholders.\n\n • Consideration for sale 10 million fully paid ordinary shares in Silver\n Swan, plus 4 million performance shares valid for five years .\n\n • Transaction allows Mercator to focus on its producing operations and\n most promising exploration prospects.\n\nMercator Gold plc is pleased to announce that the shareholders of Silver Swan\nGroup Ltd (ASX: SWN) have approved the purchase of a package of Mercator's\nnon-core exploration tenements in the Meekatharra area of Western Australia.\n\nThe package comprises 403km2 of granted tenements and 203km2 of tenements under\napplication.\n\nThe consideration for the sale is the issue to Mercator of 10,000,000 fully paid\nordinary shares in Silver Swan and 4,000,000 performance shares.\n\nThe performance shares are valid for five years and convert to 4,000,000 fully\npaid ordinary shares upon Silver Swan identifying on the tenements, or on\nadditional tenements acquired by Silver Swan with the assistance of Mercator,\nIndicated Mineral Resources of 350,000 ounces of gold or equivalent. In the\nevent that Silver Swan does not achieve this within the five year timeframe, the\nperformance shares in their entirety convert to one fully paid ordinary share in\nSilver Swan.\n\nPatrick Harford, Managing Director of Mercator Gold, comments:\n\n'The tenements sold to Silver Swan are not contiguous with Mercator's core\nproject areas, which include the producing Surprise open pit operation and the\nplanned Bluebird open pit and Prohibition-Vivian-Consols underground\ndevelopments.\n\nNevertheless these non-core tenements contain numerous base metals and gold\nprospects that require significant exploration to develop their full potential.\n\nThe sale to Silver Swan is expected to allow that potential to be more quickly\nrealised whilst still delivering substantial benefits to Mercator.\n\nSilver Swan is to embark on an aggressive exploration programme over the\ntenements they have acquired, and we eagerly anticipate the results.'\n\n\nFor further information please contact:\n\nMercator Gold plc\nTerry S...