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TORONTO, March 13, 2014 /CNW/ - Ecuador Gold and Copper Corp. (TSX-V: EGX) ("EGX" or the "Company") announced today that it has engaged CHF Investor Relations ("CHF"), a highly regarded Canadian investor relations firm headquartered in
Toronto, as its IR partner, pursuant to a services agreement (the "Services Agreement") for investor relations and market-making for a term beginning on
March 1, 2014 ending on February 28th, 2016 whereon the seventh month from the date of signature the Company
may terminate with 30 days' notice. The Services Agreement is subject
to TSX Venture Exchange (the "Exchange") approval.
"With a Preliminary Economic Assessment and an updated NI 43-101
Resource estimate report pending, we feel now is the opportune time to
showcase our flagship Condor Gold Project which already has an NI
43-101 defined Indicated resource of 6.365 million ounces of gold and a
further inferred resource of 2.06 million ounces of gold. We are
confident in the value inherent in this Project even in today's gold
market. I have worked with CHF in the past and therefore know their
abilities and reach into the investment community," commented Glenn
Laing, President & CEO.
Effective March 1, 2014, the Services Agreement is for a term ending on
February 28th, 2016. The Services Agreement may be terminated on with 30 days' notice
commencing on the seventh month from the date of signature. Under the
terms of the Services Agreement, which is subject to TSX Venture
Exchange approval, CHF will receive monthly fees of $7,500 and
reimbursement of disbursements. CHF has been granted 500,000 EGX stock
options at an exercise price of $0.10 per share and 500,000 EGX stock
options at an exercise price of $0.20 per share. The stock options
granted to CHF vest quarterly over twelve months from the date of
issuance and can be exercised for a period of five years from the date
of issuance. As is required for Tier 2 Exchange Issuers, upon
termination of the Services Agreement, options will be cancelled after
30 days. In addition, the Company has also granted 500,000 EGX stock
options pursuant to its stock option plan exercisable at price of $0.10
per share for a period of 5 years to its independent director, Mr.
Mario Blejer, in recognition of his valuable services as an independent
CHF has offered its Market Liquidity Program as a solution to clients'
illiquidity issues since 2002. The market-making activity will be
conducted using a registered broker in compliance with Policy 3.4 of
the Exchange's Corporate Finance Manual (the "Manual"), IIROC's Universal Market Integrity Rules & Policies (2010) and other
relevant policies, so that trading orders in the Company's shares are
made to manage share price volatility and imbalances of orders in order
to improve trading liquidity on the Exchange.
Kroy Holdings Limited, an EGX shareholder, has provided 200,000 EGX
shares in initial capital for the purposes of market-making in
accordance with Section 2.8 of Policy 3.4 of the Manual.
Prior to the grant of options outlined above, CHF had no direct or
indirect interest in the Company or its securities.
About Ecuador Gold and Copper Corp.
Ecuador Gold and Copper Corp. is a Canadian exploration and mining
company that is focused on five main deposits within its Condor Gold
Project which include: 1) Santa Barbara 2) Los Cuyes 3) Soledad 4) El
Hito 5) Chinapintza (Joint Venture). The Condor Gold Project has an NI
43-101 indicated resource of 6.365 million oz gold (averaging 0.62 g/t)
and a further inferred resource of 2.06 million oz gold (averaging 0.52
In addition the El Hito Cu-Mo porphyry deposit hosts an Inferred copper
resource of 161 million tonnes grading 0.31% copper (1.1 billion pounds
of Cu). For more information, please see the Company's resource table
at www.ecuadorgoldandcopper.com or its Technical Report dated effective
October 16, 2013 which is available under the Company's profile on
SEDAR at www.sedar.com.
These resources were calculated and updated by Al Maynard and Associates
Pty Ltd. of Perth, Australia as of October 16, 2013 and are described
in the Technical Report.
About CHF Investor Relations
CHF adds substantial financial and investment acumen and experience,
gained since the late 1970's, to public companies as an outsourced,
low-cost equivalent to an internal investor relations department. CHF
serves an international portfolio of TSX/TSX Venture and CSE listed
companies operating in a broad range of industries including mineral
exploration and producers, oil & gas, industrial products and services,
high-tech, business solutions and products, and special situations
The Company has not completed a preliminary economic assessment or
feasibility study of the Condor Gold and Copper Project under NI
43-101, and there is no assurance that the exploration and subsequent
development operations of the Condor Gold and Copper Project will be
economically or technically viable.
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:
please contact Ecuador Gold and Copper Corp. as follows:
President & CEO
Telephone: +1 (647) 865 3101
CHF Investor Relations
Jeanny So, Senior Account Manager
Tel: +1 416 868 1079 ext. 231