ECR Minerals Regulatory News (ECR)

7 Oct 2009 16:31

MERCATOR GOLD plc("Mercator Gold", "Mercator" or "the Company")

PLACING & ISSUE OF EQUITY

London 7 October 2009

PLACING

The Company has made a placement of 3.125 million shares at 4 pence per share to raise £125,000. The placement, made at a 15% premium to the market, was organised through the Company's long time advisors, Loeb Aron, at a cost of 5% plus broker warrants. The funds raised will be used to continue the work on the Copper Flat Project.

EXERCISE OF WARRANTS

The Company also announces that pursuant to the terms of a Warrant Instrument by way of Deed Poll dated 29 May 2009, Notice of Exercise has been received for 114 Warrants for Ordinary Shares of 0.1p each in the Company (the "Shares") at a subscription price of 5p each.

The Company has applied for the 3,125,000 and 114 Shares (3,125,114 New Ordinary Shares in total) to be admitted to trading on AIM. Admission is expected to take place on 8 October 2009. The New Ordinary Shares will rank pari passu in all respects with the existing ordinary shares in the Company currently traded on AIM. Following admission there will be 124,368,596 New Ordinary Shares in issue.

Managing Director, Patrick Harford, said: "The placement of shares - achieved at a premium to market price - strengthens Mercator's balance sheet and provides the financial headroom for the company to pursue its current work programmes."

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AIM: MCR

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