Business
Sale of Exploration Leases
Sale of Exploration Leases.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n Mercator Gold PLC\n20 February 2008\n\n \n Mercator Gold plc\n\n SALE OF EXPLORATION LEASES\n\nLondon: 20 February 2008 - Mercator Gold plc ('Mercator' or 'the Company') is\npleased to announce the sale of certain of its non-core exploration leases in\nthe Meekatharra district of Western Australia to Silver Swan Group Ltd ('Silver\nSwan'), an ASX listed company. The tenements are prospective for base metals,\ngold and industrial minerals*.\n\nThe tenements being sold comprise 46 granted tenements and 14 granted\napplications covering approximately 600 sq km representing about 30% of the\nCompany's total land-holdings in the Meekatharra District.\n\nThe consideration for the sale of the tenements to Silver Swan will be satisfied\nby the issue to Mercator of 10,000,000 fully paid Silver Swan ordinary shares of\nA$0.20 each and 4,000,000 Silver Swan performance shares. These performance\nshares will convert to fully- paid ordinary shares subject to certain terms and\nconditions, the most notable of which is the proving up of 350,000 ounces of\ngold, or gold equivalent, in to the indicated resource category. Silver Swan\npresently has 23,350,001 shares in issue. Mercator's initial shareholding of ten\nmillion shares will represent approximately 30% of the issued capital of Silver\nSwan. The transaction is subject to a due diligence process and the receipt of\napproval from the shareholders of Silver Swan.\n\nMichael Elias, a non-executive director of Mercator, will assume the\nNon-Executive Chairman position of Silver Swan and Dr Susan Vearncombe, former\nGeneral Manager-Geology of Mercator Gold plc will become the Managing Director\nof Silver Swan.\n\n\nManaging Director of Mercator Gold, Patrick Harford, said:\n\n'The rational for the sale is the tenements, none of which are contiguous with\nMercator's core holdings covering the Paddy's Flat, Yaloginda, Nannine and Reedy\nareas, contain numerous base metals and gold prospects that require significant\nexploration to develop their full potential; the sale to Silver Swan will allow\nthat potential to be quickly realised whilst delivering significant benefits to\nMercator's shareholders; and Silver Swan presently has A$2.4 million available\nfor exploration expenditure and is expected to aggressively develop the\npotential of the tenement package.'\n\n\n* Maps illustrating the ten...