14th Sep 2016 16:19
LONDON (Alliance News) - Mining company ECR Minerals PLC announced late on Wednesday the issue of 2.41 billion new shares to settle liabilities, including a number of unpaid fees and salaries to former employees.
The shares form approximately 10.7% of the company's capitalisation, with a total issued share capital of 25.84 billion shares. ECR's market capitalisation stood at GBP797,731 on September 14.
Of the issue, ECR said 1.57 billion shares are in settlement of GBP100,000 in unpaid salary due to former Chief Executive Officer Stephen Clayson, accrued during 2014 and 2015. Clayson resigned as CEO in August.
A further 316.0 million shares were issued in settlement of USD26,663 to Cosme Maria Beccar Varela, a director of ECR's Argentina-based subsidiary Ochre Mining SA. An additional 110.2 million shares were issued to settle unpaid salary and consulting fees due to an unnamed former employee and former consultants.
All shares issued for the settling of unpaid fees and salary were issued at a price of 0.00635 pence a share.
Another 414.5 million shares were issued to satisfy the second tranche of consideration shares related to the acquisition of the Avoca and Bailieston gold projects in Australia by ECR's subsidiary Mercator Gold Australia Pty. Those shares were issued at 0.0069375 pence a share.
Shares in ECR Minerals closed down 1.8% at 0.000540p a share Wednesday.
By Adam Clark; [email protected]
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