Ecometals Limited
FRANKFURT : GDQ
BERLIN : GDQ
TSX VENTURE : EC

Ecometals Limited

September 02, 2010 12:22 ET

Ecometals Limited Announces Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Sept. 2, 2010) -

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

Ecometals Limited (the "Company") (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ) is announcing the commencement today of a non-brokered private placement for up to 26,666,666 units of securities of the Company (each, a "Unit") at a price of CDN$0.15 per Unit for gross proceeds of up to CDN$4,000,000 (the "Offering"). Each Unit will consist of one common share and one common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to purchase one common share of the Company at a price of CDN$0.25 for a 24 month period after the issuance thereof. The Company intends to close the Offering in the last week of September. The securities issued in the Offering will be subject to a four month hold period beginning upon their issuance.

The gross proceeds from the Offering will be used for further exploration purposes, and for working capital purposes.

The Company will be paying finder's fees representing 8% of the gross proceeds raised from subscribers introduced to the Company by certain finders. Such fees will be satisfied by the issuance of Units at the Offering price.

The Offering is subject to, among other things, the approval of the TSX Venture Exchange.

Any information regarding the Offering should be directed to the contact names below.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer of securities for sale in the United States or Canada or the solicitation of an offer to buy securities in the United States or Canada, nor shall there be any sale of the securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful.

About Ecometals
Ecometals Limited is a Canadian-listed mineral exploration and development company focused on mineral resources in Latin America. Apart from its gold exploration activities in Ecuador, Ecometals also has significant manganese and iron projects in Brazil at grass roots and development planning stages.

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. In this news release, the Company's anticipated closing of the Offering and the anticipated use of proceeds in the event the Offering closes constitutes forward looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the failure to close the Offering in a timely manner, as well as those risks set out in the Company's public documents filed on SEDAR. Although the Company 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. The Company 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.

Contact Information