ECR Minerals Regulatory News (ECR)

29 Jun 2009 11:41



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN

29 June 2009

Mercator Gold plc

("Mercator Gold", "Mercator" or the "Company")

Placing of 42.5 million ordinary shares at 2p per ordinary share with institutions to raise £850,000

Mercator Gold plc announces the placing (the "Placing") of 42.5 million new ordinary shares of 0.01p each ("New Ordinary Shares") at a price of 2 pence per share to raise £850,000 before expenses.

Old Park Lane Capital plc ("OPL") has been appointed as Joint Broker to the Company and acted for the Company in the Placing of the New Ordinary Shares with predominantly OPL's institutional and ultra high net worth investors, which is conditional upon, inter alia, admission of the New Ordinary Shares to trading on AIM. 

The Directors of Mercator have identified, and are in the early stages of the due diligence process required to evaluate, a number of potential acquisitions and it is intended that the proceeds of the Placing may allow the Company to pursue such opportunities as and when appropriate.

Certain Directors of the Company have participated in the Placing, and now have the following shareholdings in the Company:

In order to satisfy institutional requirements, the New Ordinary Shares will be issued and admitted to AIM in three tranches. Application has been made for the admission of 17,625,000 New Ordinary Shares to AIM effective 2 July 2009. Application will be made for 17,375,000 New Ordinary Shares to be admitted to AIM on 13 July 2009 and 7,500,000 New Ordinary Shares are expected to be admitted to AIM on 27 July 2009.  The New Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares currently traded on AIM. Following the third admission there will be 115,174,911 Ordinary Shares in issue.

Additionally, management has secured a buyer for the purchase of an existing 7,998,268 shares for £159,965.36.

Patrick Harford, Managing Director of Mercator Gold, commented: "We are very encouraged by the continued support of our existing shareholders and we welcome our new investors in this Placing, which provides the Company with the financial flexibility to pursue new projects of merit."

For further information contact:

Mercator Gold plc 

Michael Silver, Chairman

Patrick Harford, Managing Director  Tel: +44 (0) 20 7929 1010

Email: info@mercatorgold.com 

Website: www.mercatorgold.com

Old Park Lane Capital PLC

Michael Parnes, Chief Executive Tel: +44 (0) 20 7493 8188

Email: info@oldplc.com

Website: www.oldplc.com

Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888

Simon Rothschild

Oliver Winters

Cenkos Securities plc Tel: +44 (0) 7397 8900

Adrian Hargrave

Beth McKiernan

AIM: MCR

Old Park Lane Capital plc ("OPL"), which is authorised and regulated in the United Kingdom by The Financial Services Authority, is acting exclusively for the Company as, joint broker and placing agent in connection with the Placing. OPL is not acting for any other person and will not be responsible to anyone other than the Company for providing the protections afforded to clients of OPL or for advising any other person in relation to the Placing The new Ordinary Shares have not been, nor will be, registered under the United States Securities Act of 1933 (as amended) or under the securities legislation of any state of the United States of America or of any province or territory of Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa. There will be no public offering of the new Ordinary Shares in the United States. Subject to certain exceptions, the new Ordinary Shares may not be directly or indirectly offered, sold, transferred, taken up or delivered in, into or from the United States, Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa or their respective territories or possessions. This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy new Ordinary Shares in any jurisdiction in which such offer or solicitation is unlawful. Accordingly, copies of this announcement are not being and must not be mailed or otherwise distributed or sent in or into or from the United States, Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa and any person receiving this announcement (including custodians, nominees and trustees) must not distribute or send it in or into or from the United States, Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa. This announcement has not been approved by Cenkos or OPL for the purposes of section 21 of the Financial Services and Markets Act 2000. This announcement has not been examined or approved by The Financial Services Authority or the London Stock Exchange or any other regulatory authority.