ECR Minerals plc Subscription Update
May 02 2017 - 2:00AM
UK Regulatory
TIDMECR
AIM: ECR
US OTC: MTGDY
ECR MINERALS plc
("ECR Minerals", "ECR" or the "Company")
SUBSCRIPTION UPDATE
LONDON: 2 MAY 2017 - Further to the announcements dated 27
February 2017, 31 March 2017 and 10 April 2017 in respect of the
Subscription to raise gross proceeds of GBP553,564 ("Subscription
Announcements"), the directors of ECR Minerals plc (the
"Directors") announce that on 30 April 2017 the Company entered
into a second amendment to the Subscription Agreement with Shenyang
Xinliaoan Machinery Co Ltd, as detailed below.
Capitalised terms used, but not otherwise defined in this
announcement shall have the same meanings as set out in the
Subscription Announcements.
Pursuant to the Subscription Agreement and first amendment
thereto, the Gross Proceeds (less the non-refundable Deposit of
GBP150,000 which has already been received by the Company) of the
Subscription were due to be received by the Company by 30 April
2017. However, whilst the Investor has received an Overseas
Investment Permit from the Provincial Bureau of Commerce in respect
of the remittance to the Company of the balance of the Gross
Proceeds, this remains subject to foreign exchange controls, due to
which the Investor has not yet been able to complete the
remittance. In view of the good faith shown by the Investor in the
process to date, the Company has not exercised its rights to
convert the GBP150,000 Deposit into Ordinary Shares of the Company
and to terminate the Subscription Agreement.
Instead, the Company has agreed to extend the Receipt Date to 16
May 2017 and the Investor has agreed to pay the Company a further
non-refundable deposit of GBP50,000 ("Further Deposit Amount"),
bringing the total non-refundable deposit to GBP200,000 in
aggregate (the "Total Deposit Amount"). The Investor is required to
remit the Further Deposit Amount to the Company by 5 May 2017.
In the event that the Further Deposit Amount is not received by
the Company by 5 May 2017, the GBP150,000 Deposit will be converted
(unless otherwise agreed by ECR) into Ordinary Shares at a price of
2 pence per share and ECR, at its election, may either terminate
the Subscription Agreement or further extend the date by which the
Investor is required to transfer the Further Deposit Amount.
In the event that the balance of the Gross Proceeds is remitted
to the Company by 16 May 2017, the Total Deposit Amount (less any
amount already converted into Ordinary Shares pursuant to the
foregoing paragraph) will be treated as a payment on account and
will be deducted from the Gross Proceeds to be received by the
Company. In the event that the balance of the Gross Proceeds is not
received by 16 May 2017, the Total Deposit Amount (less any amount
already converted into Ordinary Shares) will be converted (unless
otherwise agreed by ECR) into Ordinary Shares at a price of 2 pence
per share to be issued to the Investor and ECR, at its election,
may either terminate the Subscription Agreement or further extend
the Receipt Date ("Further Extension").
In the event of a Further Extension, if the Total Deposit Amount
has been converted to Ordinary Shares (the "Deposit Shares"), the
Investor will be required to remit the full amount of the Gross
Proceeds (i.e. the Total Deposit Amount will not be treated as an
advance) to the Company in order to complete the Subscription. The
Deposit Shares will not be subject to any lock-up arrangements.
Unless otherwise stated above, the key terms of the Subscription
remain as set out in the Subscription Announcement dated 27
February 2017.
ABOUT ECR
ECR is a mineral exploration and development company. ECR's
wholly owned Australian subsidiary Mercator Gold Australia has 100%
ownership of the Avoca, Bailieston and Timor gold projects in
Victoria, Australia. ECR has earned a 25% interest in the Danglay
epithermal gold project, an advanced exploration project located in
a prolific gold and copper mining district in the north of the
Philippines. An NI43-101 technical report was completed in respect
of the Danglay project in December 2015, and is available for
download from ECR's website.
ECR's wholly owned subsidiary Ochre Mining has a 100% interest
in the SLM gold project in La Rioja, Argentina. Exploration at SLM
has focused on identifying small tonnage mesothermal gold deposits
which may be suitable for relatively near term production.
Market Abuse Regulations (EU) No. 596/2014
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the
publication of this announcement via Regulatory Information Service
(RIS), this inside information is now considered to be in the
public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc Tel: +44 (0)20 7929 1010
William (Bill) Howell, Non-Executive Chairman
Craig Brown, Director & CEO
Ivor Jones, Director & COO
Email:
info@ecrminerals.com
Website: www.ecrminerals.com
Cairn Financial Advisers LLP Tel: +44 (0)20 7213 0880
Nominated Adviser
Emma Earl / Jo Turner
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
FlowComms Tel: +44 (0)7891 677 441
Investor Relations
Sasha Sethi
Blytheweigh Tel: +44 (0)20 7138 3204
Public Relations
Tim Blythe / Camilla Horsfall / Nick Elwes
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such
statements may be subject to numerous known and unknown risks,
uncertainties and other factors that could cause actual results or
events to differ materially from current expectations. There can be
no assurance that such statements will prove to be accurate and
therefore actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward looking statements. Any
forward-looking statements contained herein speak only as of the
date hereof (unless stated otherwise) and, except as may be
required by applicable laws or regulations (including the AIM Rules
for Companies), the Company disclaims any obligation to update or
modify such forward-looking statements because of new information,
future events or for any other reason.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170501006492/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
May 02, 2017 02:00 ET (06:00 GMT)
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