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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 director.
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 g/t).
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 sector.
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: