Ecometals Engages RK Equity Advisors to Provide Investor Relations Services
09:03 EST Tuesday, January 12, 2010
TORONTO, ONTARIO--(Marketwire - Jan. 12, 2010) - Ecometals Limited (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ) (the "Company") is pleased to announce that it has entered into an agreement (the "Agreement") with RK Equity Advisors, LLC ("RK Equity Advisors") for the provision of investor relations services. The Agreement is effective for a period of 12 months beginning as of January 1, 2010, and is subject to the approval of the TSX Venture Exchange (the "TSXV").
RK Equity Advisors, based in Forest Hills, New York, is a boutique consultancy firm specializing in investment community outreach in North America and Europe for emerging market resource equities listed in Toronto, New York, London, Sydney and Johannesburg. RK Equity Advisors has previously provided investor relation services to the Company pursuant to an agreement that terminated on March 31, 2009, pursuant to which it was granted certain stock options to acquire common shares of the Company. An affiliate of RK Equity Advisors has, in the past, received shares and warrants of the Company in payment of its finder's fee in connection with a private placement of securities of the Company. Other than as described herein, RK Equity Advisors has no other direct or indirect interest in the Company or its securities.
Pursuant to the Agreement, RK Equity Advisors shall provide investor relations services, including but not limited to:
- developing a comprehensive strategy to maximize investor relations; and
- introducing the Company to select North American and European brokers, sell-side analysts and institutional investors.
Subject to TSXV approval of the Agreement, the Agreement provides that the Company will pay RK Equity Advisors a monthly fee of USD$9,000 plus applicable taxes payable at the end of each month during the term of the Agreement. Subject to the approval of the Company's shareholders to an increase in the number of shares issuable under the Company's fixed stock option plan (the "Option Plan"), the Company has also granted to RK Equity Advisors options (the "Options") to acquire 200,000 common shares of the Company, which options will vest in equal amounts on a monthly basis over the 12 month period, all in accordance with the terms of the Option Plan. The term of the Options is 3 years from the date of grant, with an exercise price of CDN$1.20 per common share. The total cost of the Agreement to the Company during the 12 month term will be USD$108,000 plus approved expenses, unless earlier terminated.
About Ecometals
Ecometals Limited is a Canadian-listed mineral exploration and development company focused on mineral resources in Latin America. Apart from its gold exploration activities in Ecuador, Ecometals also has significant manganese and iron projects in Brazil at grass roots and development planning stages.
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company obtaining shareholder and TSXV approval of the amendment to the Option Plan and TSXV approval to the Agreement. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the failure to obtain the required above-mentioned approvals and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Ecometals Limited - Investors
Fran Scola
Chief Executive Officer
scola@lfmpartners.com
or
Ecometals Limited
Andrew Robertson
Chief Financial Officer
andrewrobertson@ecometalslimited.com
or
Ecometals Limited - Information
Enquiries
info@ecometalslimited.com
www.ecometalslimited.com
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.
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