17th Oct 2007 16:08
Mercator Gold PLC17 October 2007 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN Mercator Gold plc Placing of Convertible Loan Notes to raise approximately £2.6 million LONDON: 17 October 2007 - Mercator Gold plc ("Mercator" or the "Company")(MCR.L) announces the placing (the "Placing") of convertible loan notes("Notes") with institutional investors to raise approximately £2.6 millionbefore expenses. The Notes carry interest of 8.5% per annum, will be redeemed at par on or before16 October 2010 and are convertible into ordinary shares in the Company("Ordinary Shares") at a conversion price of 95p per Ordinary Share at any timeon or after the first anniversary of their issue and at 120p per Ordinary Shareat any time on or after the second anniversary of their issue. The closingmid-market price of an Ordinary Share on 16 October 2007 was 82p. CenkosSecurities plc, Ocean Equities Limited and Loeb Aron & Company Limited acted forthe Company in the Placing of the Notes, which will not be admitted to tradingon AIM. Funds will be used to expedite pre-stripping at the Bluebird deposit and todrill the Company's Euro Project. Commissioning of the Company's Bluebird Millis now well-advanced with production ramping up according to the Company'sschedule. Mill throughput of up to 240t/hour has been achieved whilstmetallurgical recoveries have exceeded planned levels of 90%. Patrick Harford, Managing Director of Mercator Gold, commented: "Mercator is keen to proceed with the opening up of the Bluebird Pit and todrill the Euro Project. These projects will underpin the Company's objective ofproducing 120,000 ounces of gold over the next 12 months." For further information contact: Mercator Gold plcTerry Strapp, Chairman Tel: +61 (0) 412 228 422Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010 Mob: +44 (0) 7786 486 645Email: [email protected]: www.mercatorgold.com Bankside Consultants Ltd Simon Rothschild Tel: +44 (0) 20 7367 8888Keith IronsOliver Winters Cenkos Securities plc Ian Soanes Tel: +44 (0) 20 7397 8924Adrian Hargrave AIM: MCR Cenkos Securities plc ("Cenkos"), which is authorised and regulated in theUnited Kingdom by The Financial Services Authority, is acting exclusively forthe Company as nominated adviser, joint broker and placing agent in connectionwith the Placing. Cenkos is not acting for any other person and will not beresponsible to anyone other than the Company for providing the protectionsafforded to clients of Cenkos or for advising any other person in relation tothe Placing. Ocean Equities Limited ("Ocean"), which is authorised and regulatedin the United Kingdom by The Financial Services Authority, is acting exclusivelyfor the Company as joint broker and placing agent in connection with thePlacing. Ocean is not acting for any other person and will not be responsible toanyone other than the Company for providing the protections afforded to clientsof Ocean or for advising any other person in relation to the Placing. Loeb Aron& Company Limited ("Loeb Aron"), which is authorised and regulated in the UnitedKingdom by The Financial Services Authority, is acting exclusively for theCompany as placing agent in connection with the Placing. Loeb Aron is not actingfor any other person and will not be responsible to anyone other than theCompany for providing the protections afforded to clients of Loeb Aron or foradvising any other person in relation to the Placing. Neither the Notes nor thenew Ordinary Shares into which the Notes are convertible have been, nor will be,registered under the United States Securities Act of 1933 (as amended) or underthe securities legislation of any state of the United States of America or ofany province or territory of Canada, Australia, Japan, the Republic of Irelandor the Republic of South Africa. There will be no public offering of the Notesor the new Ordinary Shares into which the Notes are convertible in the UnitedStates. Subject to certain exceptions, neither the Notes nor the new OrdinaryShares into which the Notes are convertible may be directly or indirectlyoffered, sold, transferred, taken up or delivered in, into or from the UnitedStates, Canada, Australia, Japan, the Republic of Ireland or the Republic ofSouth Africa or their respective territories or possessions. This announcementdoes not constitute an offer to sell or issue or the solicitation of an offer tobuy Notes or the new Ordinary Shares into which the Notes are convertible in anyjurisdiction in which such offer or solicitation is unlawful. Accordingly,copies of this announcement are not being and must not be mailed or otherwisedistributed or sent in or into or from the United States, Canada, Australia,Japan, the Republic of Ireland or the Republic of South Africa and any personreceiving this announcement (including custodians, nominees and trustees) mustnot distribute or send it in or into or from the United States, Canada,Australia, Japan, the Republic of Ireland or the Republic of South Africa. Thisannouncement has not been approved by Cenkos, Ocean or Loeb Aron for thepurposes of section 21 of the Financial Services and Markets Act 2000. Thisannouncement has not been examined or approved by The Financial ServicesAuthority or the London Stock Exchange or any other regulatory authority. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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