ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

October 12, 2007 17:01 ET

ECU Silver Announces Closing of the Acquisition of the Velardena Mineral Claims

TORONTO, ONTARIO--(Marketwire - Oct. 12, 2007) - ECU Silver Mining Inc. (TSX:ECU) ("ECU Silver" or the "Company") is pleased to announce that it has closed the previously announced transaction whereby ECU has acquired, through its wholly-owned subsidiary Minera William S.A de C.V., ownership and title of certain key mineral claims and leases on the Velardena Property (the "Velardena Claims") in Durango Mexico.

There are 18 claims on the Velardena property. After giving effect to this transaction, ECU's ownership will be 100% on 14 of the mineral claims and 70% on the four remaining mineral claims.

The Company effectively exercised an option (the "Option Agreement") to acquire the "Velardena Claims for a payment of US$4,500,000 and the issuance of 4,790,000 units (the "Units"). The number of units to be issued is based on an agreed price per Unit of $2.30. Each Unit is comprised of one ECU Silver common share (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant a "Warrant"). Each Warrant entitles its holder to acquire one Common Share at a price of $2.85 at any time on or before June 4, 2009. However, if the closing price of the Common Shares is equal to, or greater than, $3.75 for a period of 20 consecutive trading days any time after February 13, 2008, (Note: This date has changed from the October 5, 2007 date as stated in the previously announced press release), ECU may give notice to the holders of the Warrants and thereby accelerate the expiry date of the Warrants to the 30th day following the date on which such notice is given. Closing of this transaction is subject to the receipt of all applicable regulatory approvals.

The Company also announced today the issuance of share purchase options (the "Options") pursuant to its stock option plan to a total of 16 directors, officers and employees of the Company. A total of 5,300,000 Options were granted representing 2.26% of 234,741,120 shares outstanding on the date of grant. As of June 30, 2007 there were 6 842 000 stock options outstanding. This grant is effective as of October 10, 2007 and each share purchase option grants its holder the right to acquire one common share of ECU at a price of $2.40 which is a 3.45% premium to ECU's closing share price on October 10, 2007.

Contact Information

  • ECU Silver Mining Inc.
    Stephen Altmann
    President
    (416) 644-8640
    (416) 644-8801 (FAX)
    Website: www.ecu.ca