Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Oct. 17, 2011) – Ecometals Limited (the “Company”) (TSX VENTURE:EC)(FRANKFURT:GDQ)(BERLIN:GDQ) is announcing today the closing of a private placement (the “Offering”) raising gross proceeds of CDN$130,000 whereby 650,000 units of securities of the Company (each, a “Unit”) have been placed at a price of CDN$0.20 per Unit. Each Unit comprises one common share (each, a “Common Share”) of the Company and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant has a an exercise price of CDN$0.30 with an exercise period of 12 months from today’s date expiring at 5:00 p.m. (Vancouver time) on October 17, 2012. Among the subscribers to the Offering is Gold Street Advisors LLC, a New York-based business which specialises in commodity derivatives and of which William Lamarque is one of the two managing partners. Mr. Lamarque commented: “This is the first time that Gold Street has taken an equity position in the mining sector, although it numbers many mining companies among Gold Street’s clients. This demonstrates our strong confidence in the Company.” Gold Street subscribed for 250,000 Units at a cost of CDN$50,000.
In addition, the Company is pleased to announce that it has also completed a non-brokered private placement (the “Note Financing”) of note units of the Company (the “Note Units”). The Company issued an aggregate of 150 Note Units at a price of US$1,000 per Note Unit for aggregated gross proceeds of US$150,000. The subscriber to the Note Financing is an arm’s-length party to the Company.
Each Note Unit consists of one US$1,000 principal amount unsecured promissory note (the “Note”) of the Company and 1,250 non-transferable common share purchase warrants (the “Note Warrants”) of the Company. Each Note will bear interest at a rate of 10% per annum and will mature of December 30, 2011. Each Note Warrant entitles the holder to purchase a common share in the capital of the Company at an exercise price of CDN$0.30 per share at any time prior to 5:00 p.m. (Vancouver time) on October 17, 2012.
The net proceeds raised under the Offering and the Note Financing will be used to fund exploration drilling on the Company’s Rio Zarza property and for general corporate purposes, as the case may be.
All securities issued in the Offering and the Note Financing are subject to a 4 month hold period expiring on February 18, 2012.
The Company is also reporting the extension until December 1, 2011 of the exclusivity and due diligence period under its agreement with Asia Minerals Limited (“Asia Minerals”) respecting the proposed sale by the Company to Asia Minerals of its indirect interest in the Serra do Navio manganese project in the northern Brazil state of Amapá (see Press Releases dated April 4, April 18 and September 19, 2011). If Asia Minerals issues its written confirmation that its due diligence is satisfactory to it (in its sole discretion) at the end of the extended due diligence period, closing would be expected to be completed in late mid-December, 2011.
Mr. Lamarque commented: “We would have liked to have received a written confirmation from Asia Minerals today but we have every sympathy with Asia Minerals’ difficulties over their test. We have developed a strong working relationship with Asia Minerals and respect their professionalism in moving this contract forward.”
About Ecometals
Ecometals Limited is a Canadian-listed mineral exploration and development company focused on mineral resources in Latin America. Apart from the Manganese Project, Ecometals also has gold exploration activities in Ecuador and Brazil and significant iron projects in Brazil at grass roots and development planning stages.
