VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 26, 2012) - Ecometals Limited (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ) (the "Company") announces that it has completed a loan financing with an arm's length individual (the "Lender") in the principal amount of US$250,000 (the "Loan"). The Loan matures on July 24, 2013, and bears interest at a rate of 10% per annum. In connection with the Loan, the Company issued to the Lender a promissory note in the principal amount of the Loan and 300,000 warrants (the "Warrants"). Each Warrant is exercisable into one common share at a price of C$0.15 per share at any time prior to 5:00 p.m. (Vancouver time) on July 24, 2013. The proceeds from the Loan will help fund a number of the Company's critical corporate initiatives.
All securities issued pursuant to the Loan will be subject to a four-month statutory hold period, which will expire on November 25, 2012.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Ecometals Limited is a Canadian TSX Venture Exchange listed mineral exploration and development company focused on the mineral resources in Latin America. Apart from its gold exploration in Ecuador, Ecometals also has significant manganese, iron and gold projects in Brazil at grass roots exploration and development planning stages.
This news release contains forward-looking information and forward‐looking statements (collectively, "forward‐looking information") under applicable securities laws, concerning the Company's business, operations, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward‐looking information is frequently identified by such words as "may", "will", "plan", "expect", "estimate", "anticipate", "believe", "intend" and similar words referring to future events and results, including with respect to the Company's intended use of proceeds from the Loan. This forward‐looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, changes in general economic conditions or conditions in the financial markets, and unanticipated operational or technical difficulties. Such forward‐looking information is based on a number of assumptions, including but not limited to, there being no significant decline in existing general business and economic conditions. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward‐looking information and accordingly, readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this news release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
Neither 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.