ECR Minerals Regulatory News (ECR)

30 Aug 2005 16:29

Mercator Gold PLC30 August 2005 MERCATOR GOLD PLC ("Mercator Gold" or the "Company") Results of Extraordinary General Meetings ("EGM's") London 30 August, 2005 - Mercator Gold Plc (AIM, MCR & MCRW) The Company is pleased to announce that at the EGM of the shareholders held at11:00am today, all resolutions have been passed. The Company is pleased to announce that at the EGM of the holders of 8 penceWarrants constituted by a warrant instrument dated 29 September 2004, held at12:00am today, all resolutions have been passed. Further to the Company's announcement of 5 August 2005 and the passing of theabove mentioned resolutions, the holders of 8 pence warrants (AIM, MCRW) are nowentitled to subscribe for one ordinary share at 8 pence and, for a limited time,to receive one warrant to subscribe for one ordinary share at 10 pence. Thisoffer is valid up to 3pm on 13 September 2005. Thereafter the remaining 8 pencewarrants will still be valid on their original terms, the expiry date being 7November 2005. The 10 pence warrant will expire on 7 November 2006. Copies of the Invitation to Exercise Warrants Early are available from theCompany at Peek House, 3rd floor, 20 Eastcheap, London, EC3M 1EB and theCompany's website www.mercatorgold.com. Patrick Harford, CEO of Mercator commented: "The positive results from ourshareholders and warrantholders meetings mark a very encouraging note ofconfidence as well as enabling the Company to continue its extended explorationprogrammes at Meekatharra. I am pleased to say that the eligible directors,where practical, intend to follow their rights under this offer." For further information please contact:Mercator Gold plcPatrick Harford, Managing Director Tel: +44 (0) 7786 486645Terry Strapp, Chairman Tel: +61 (0) 8 9322 7422Michael de Villiers, Finance Director Tel: +44 (0) 2079291010Email: info@mercatorgold.comWeb: www.mercatorgold.com Beaumont Cornish LimitedRoland Cornish / Felicity Geidt Tel: +44 (0) 20 7628 3396Ocean Equities LimitedWill Slack Tel: +44 (0) 20 7786 4375 King & Shaxson Capital LtdNick Bealer Tel: +44 (0) 20 7553 8281Parkgreen CommunicationsJustine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713 Mercator operates a continuous disclosure policy with respect to explorationresults. Company news releases are based on technical information approved bySusan Vearncombe (Company Director), BSoc.Sci, MSc(Hons), PhD, RPGeo, MAIG. Note to editors Mercator Gold plc was admitted to AIM on 8 October 2004, and entered into theAnnean Joint Venture with St. Barbara Mines to explore for economic goldresources in the Annean Joint Venture area in the Meekatharra region of WesternAustralia. Under the terms of the Annean Joint Venture, Mercator Gold Pty Ltd (thecompany's wholly owned subsidiary) has a right to earn a 45 per cent interest inthe Meekatharra Properties by spending AUD$3 million on exploration by 2 March2006, with a minimum expenditure of AUD$1 million by 2 March 2005. If Mercatorearns the 45 per cent interest, it can elect to increase this interest to 51 percent by spending a further AUD$1 million by 2 March 2007. If Mercator earns the51 per cent interest, it can elect to increase its interest to 70 per cent byspending a further AUD$ 4 million by 2 March 2009. If Mercator earns the 70 percent interest, St. Barbara Mines must then contribute pro-rata on any furtherexpenditure or dilute its interest by a standard dilution formula. Mercator recently announced that the Group has spent the first AUD$1 million andhas elected to proceed towards the first step of earning 45% with a minimumexpenditure requirement of AUD$2 million before 2rd March 2006. SpaDiSTM is a software programme developed by Vearncombe Associates that usesfractal technologies, including autocorrelation, to generate high-grade targetsfrom historic exploration data. Mercator Gold has a contractual arrangement forthe on-going use of SpaDiSTM. The Directors have set the Company an exploration target of 2,000,000 ounces ofgold contained within four resources, each of at least 500,000 ounces within theAnnean Joint Venture area. The Company has reported initial high-grade drilling results from the first twotarget areas, Bluebird and Surprise.Projects within the Annean Joint Venture Yaloginda - This line of workings has been the principal source of productionfor St Barbara Mines. Its 15 km x 2 km area has yielded 18 deposits in a varietyof styles of mineralization, but the open pits rarely extend below 70m depth. Mercator will assess the geology, structure, alteration and gold distribution tosee if a super pit style of operation is realistic, and it will examinepotential for extensions of orebodies in depth. The target resource is >500,000oz. Nannine - Oxide deposits were mined by St Barbara with records indicated thattotal gold production has exceeded 100,000 oz. The mineralization is hosted inbasalt, iron formations and granite. Again, >500,000 oz deposits are beingsought. Kurara East - Gold mineralization is hosted in sulphidic quartz veins, mainly inaltered granite, basalt and dolerite. A 3.5 km long zone of anomalous goldgeochemistry has been identified at Bluebush and Mingah, with aircore drillingreturning some good intercepts. Meekatharra North - Is part of a line of workings with an endowment (production+ resources) of over 2.0 million ounces of gold. Mercator is targeting theunder-explored northern extension of this alteration zone. Mercator has outlinedan extension zone of mineralisation over 6500 meters long and containing twoprospects, Maid Marion and Nottingham. This information is provided by RNS The company news service from the London Stock Exchange