Here is a new one...could become very interesting in short order!!
Ecuagold to begin trading on TSX-V today
2007-01-12 08:47 ET - News Release
Mr. Anthony Ciali reports
ECUAGOLD RESOURCES LTD. TO COMMENCE TRADING ON THE TSX VENTURE EXCHANGE
Trading of Ecuagold Resources Ltd.'s common shares will begin on the TSX Venture Exchange on Jan. 12, 2007, under the symbol EGR.
Further to its prospectus dated Dec. 12, 2006, the company closed its initial public offering on Dec. 28, 2006, for gross proceeds of $6.9-million. The overallotment option granted to the agents was exercised in full, such that the offering consisted of 13.8 million units sold at a price of 50 cents per unit. Each unit consists of one common share in the capital of the company and one share purchase warrant. Each warrant entitles the holder to purchase, for a period of 18 months from the date that the company's shares are listed for trading on the exchange, one common share of the company at a price of 75 cents. The warrants will not be traded on the exchange.
The company may accelerate the expiry date of the warrants if, after the expiration of four months after the listing date, the closing price of the common shares of the company on the exchange equals or exceeds $1.25 per common share for 20 consecutive trading days, in which event, the company may give written notice to the agents and the holders of the warrants that the expiry date has been shortened to the date that is 30 days after the date of such notice.
The underwriting syndicate for the offering was led by Blackmont Capital Inc. and Bolder Investment Partners Ltd., acting as co-agents, and included Pacific International Securities Inc. The agents were entitled to receive an agents' commission in the amount of $552,000. The agents have elected to take the commission in cash, save for $79,800 which was taken in units. In addition, Blackmont has been paid a corporate finance fee of $30,000 in cash.
The agents were issued 1,725,000 non-transferable compensation options on the closing. Each agent's compensation option entitles the agents to purchase one unit at a price of 50 cents per agents' units for a period of 18 months from the listing date. The agents' units have the same composition and terms as the units.
With the successful closing of the maximum offering of 12 million units, together with the full subscription of the 1.8 million overallotment units, the company is in receipt of gross proceeds of $6.9-million before anticipated share issue expenses of approximately $163,000, the $30,000 corporate finance fee and $472,200 in agents' commissions paid in cash.
The company will use the proceeds as outlined in its prospectus dated Dec. 12, 2006, with the majority of the proceeds to be allocated to the exploration programs on the company's Molleturo and Curiplaya projects in Ecuador, pursuant to NI 43-101 reports recently completed for each of the projects, for general exploration programs on the company's other exploration projects, and for general and administrative expenses. A copy of the prospectus may be found on SEDAR.
Ecuagold Resources is engaged in the acquisition, exploration and potential development of primarily precious metals properties in Ecuador. EGR presently controls, through wholly owned subsidiaries, a 100-per-cent interest in 11 concessions, and has an option to acquire a 100-per-cent interest in a 12th concession, comprising eight distinct projects covering a total of 31,198.84 hectares. In addition, the company has also recently made applications with the Ministry of Energy and Mines in Ecuador for 11 additional concessions, associated with two existing exploration projects and one new exploration project, amounting to approximately 28,654.26 hectares. The company's principal properties are the Molleturo project, a high-grade polymetallic vein system, and the Curiplaya project, a gold-copper porphyry system. The majority of the company's properties are located in southern Ecuador.
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