Ecometals Limited: Update re Closing of Proposed Sale of Condor Gold Project
TORONTO, ONTARIO -- (Marketwire) -- 06/25/10 -- Ecometals Limited (TSX VENTURE: EC)(BERLIN: GDQ)(FRANKFURT: GDQ) -
On 26 April 2010, Ecometals Limited ('Ecometals') announced that it had received a proposal from Alca Gold Limited ('Alca') requesting an extension to the closing of Ecometals' agreement with Alca, to sell Ecometals' shares in Condormining Corporation S.A. and Condorview S.A. to Alca for US$9,000,000. In return for the extension, Alca intended to make a US$1m payment into an escrow account. Non refundable payments of US$100,000 every 30 days until closing with effect from April 23rd 2010 would then be made from that account to Ecometals.
This process has been delayed several times as Alca has sought to resolve the issue of completing terms with their financing party for the transaction, and the escrow payment has still to be paid.
Ecometals wishes to report that Alca is now taking a more active role in the escrow process, has agreed the principal escrow terms, has appointed an escrow agent - J.P.Morgan in Hong Kong - and is in the process of opening the escrow account with that new escrow agent.
Once this process is complete, Ecometals will be paid US$200,000 from the escrow account to cover payments to date, a further US$100,000 to cover the payment due on June 28th, and US$100,000 each month the sale process continues. Alca and their financing party are working towards closing the sale transaction and continue to reiterate their commitment to its completion.
About Ecometals
Ecometals Limited is a Canadian TSX Venture Exchange listed mineral exploration and development company focused on 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 and development planning stages.
Safe Harbour Statement:
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 statements regarding the closing of the Transaction. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure of the purchaser to secure funding to complete the purchase, failure of Ecometals and/or the purchaser to satisfy conditions of closing, risks relating to changes in economic or regulatory conditions and other risks set out in Ecometals' public documents filed on SEDAR. Although Ecometals 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. Ecometals 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.
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.
Contacts:
Ecometals Limited
Fran Scola
Chief Executive Officer
scola@lfmpartners.com
Ecometals Limited
Daniel Major
Chief Operating Officer
djmajor@ecometalslimited.com
Ecometals Limited
Enquiries
info@ecometalslimited.com
www.ecometalslimited.com