Ecuador Gold & Copper Corp. Announces Closing of Non-Brokered Private Placement for US$2,500,000
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./
VANCOUVER, Nov. 28, 2012 /CNW/ - Ecuador Gold & Copper Corp. (TSXV: EGX) is pleased to announce that it has closed its non-brokered private placement (the "Private Placement") of 11,904,762 units (the "Units") at a price of US$0.21 per Unit for gross proceeds of US$2,500,000, a portion of which has been closed in escrow, such that the subscriber holds 9.9% of the issued and outstanding shares of the Company. The remaining portion of the Units will be released on final approval from the TSX Venture Exchange.
Each Unit is comprised of one common share and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one additional common share of the Company at an exercise price of C$0.35 per common share for a period of 36 months from the date of issuance.
In connection with closing the Private Placement, the Company has agreed to pay finder's fees of US$125,000 to a finder for his efforts in sourcing the purchaser for the Private Placement.
The securities issued are subject to a four-month hold period from the date of issuance.
The net proceeds of the Private Placement will be used for exploration and development of the Company's Condor Gold Project and for general working capital purposes.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Ecuador Gold and Copper Corp.For further information:
Vice-President, Corporate Development
Telephone: (604) 569-0721