THEMAC SHAREHOLDERS APPROVE C$10.2 MILLION FINANCING
THEMAC SHAREHOLDERS APPROVE C$10.2 MILLION FINANCING
ECR Minerals plc
ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
AIM: ECR
US OTC: MTGDY
THEMAC SHAREHOLDERS APPROVE
C$10.2 MILLION FINANCING
London: 23 December 2010 – ECR Minerals plc is pleased to draw attention to the announcement made today by THEMAC Resources Group Ltd (“THEMAC”) (TSXV: MAC.H) stating that all resolutions were passed at THEMAC’s annual general meeting held on December 21 2010, including in relation to the C$10.2 million equity financing of THEMAC agreed with Tulla Resources Pty Ltd.
Closing of this financing is expected to proceed in conjunction with completion of the sale (the “Sale”) to THEMAC of ECR’s exclusive option over a 100% interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA for consideration of 10.5 million common shares of THEMAC and 10.5 million common share purchase warrants exercisable at C$0.28 per share for five years.
ECR has also acquired 4 million subscription receipts of THEMAC, which on completion of the Sale will convert to 4 million common shares of the THEMAC and 4 million common share purchase warrants exercisable at C$0.28 per share until 3 May 2013.
ECR’s interest in THEMAC after completion of the Sale will therefore be 14.5 million common shares, equivalent to approximately 20% of THEMAC’s issued common shares. ECR will also hold a total of 14.5 million common share purchase warrants of THEMAC. Following the exercise of ECR’s warrants and assuming the exercise of all warrants and options held by other parties, the Company’s interest in THEMAC’s issued common shares would be approximately 22%.
It is anticipated that ECR’s interest in THEMAC will not be subject to escrow imposed by the TSX Venture Exchange, allowing ECR the flexibility to retain or divest its interest as deemed appropriate.
The full announcement made by THEMAC may be viewed on SEDAR (www.sedar.com).
Patrick Harford, Managing Director of ECR Minerals plc, comments:
“Approval of THEMAC’s C$10.2 million financing with Tulla Resources Group by THEMAC shareholders is a key step towards completion of the sale of ECR’s option over the Copper Flat project, which we now expect to occur early in the New Year.
The funding being provided to THEMAC by Tulla will enable ongoing work towards the redevelopment of the Copper Flat mine to continue to advance at a time when copper prices are reaching record highs and widely forecast to remain strong.”
About ECR Minerals
ECR is a mineral development company with interests in the USA, Argentina, Indonesia, Thailand and Australia.
For further information please contact:
| ECR Minerals plc | ||
| Michael Silver, Chairman | Tel: +44 (0) 20 7929 1010 | |
| Patrick Harford, Managing Director | ||
|
Email: info@ecrminerals.com |
||
|
Website: www.ecrminerals.com |
||
| Daniel Stewart & Company plc | ||
| Oliver Rigby/Tessa Smith | Tel: +44 (0) 20 7776 6550 | |
| Old Park Lane Capital plc | ||
| Forbes Cutler | Tel: +44 (0) 20 7518 2603 | |
| Barry Kaplan Associates | ||
| Larry Kaplan | Tel: +1 732 747 0702 |
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