Ecometals Limited

TSX VENTURE : EC
BERLIN : GDQ
FRANKFURT : GDQ


Ecometals Limited

November 21, 2012 15:21 ET

Ecometals Announces Closing of Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 21, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES

Ecometals Limited (TSX VENTURE:EC)(FRANKFURT:GDQ)(BERLIN:GDQ) (the "Company") is pleased to announce that it closed a private placement (the "Offering") of 4,216,900 units of securities of the Company (each a "Unit") at a price of $0.05 per Unit (the "Issue Price") for gross proceeds of $210,845. Each Unit comprises one common share of the Company ("Common Share") and one Common Share purchase warrant (a "Warrant"), with each Warrant entitling the holder thereof to acquire one Common Share at a price of $0.10 per share at any time until November 20, 2014.

The gross proceeds from the sale of the Units are to be used for working capital purposes.

In connection with the Offering, the Company agreed to pay a finder's fee to persons permitted by applicable securities laws to act as finders (each a "Finder"), equal to, in the aggregate, 8% of the gross proceeds raised from subscribers introduced to the Company by such Finders payable either in (i) cash, (ii) Units issued at the Issue Price or (iii) a combination of thereof, in each case at the option of the Company. As such, the Company paid a cash fee of $15,200 to a Finder.

All securities issued yesterday are subject to a four (4) month hold period expiring on March 21, 2013.

In view of the disruption to the placing process caused by the recent storm in the United States, the Company is today intending to open a new private placement to raise up to $500,000 on the same terms in respect of both Units and Warrants as the placement which closed yesterday, subject to approval by the TSXV.

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.

About Ecometals

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.

Forward-Looking Information:

This press release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the proposed placement) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company as well as certain assumptions including, without limitation, assumptions as to the ability of the Company to raise funds in general. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, detrimental market conditions for equity securities and a lack of investor interest.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

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.

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