ECU Silver Mining Inc.
TSX VENTURE : ECU

ECU Silver Mining Inc.

May 04, 2007 15:24 ET

ECU Silver Mining Inc.: Announces Pricing of Previously Announced $25 Million Private Placement Led by Blackmont Capital Inc.

TORONTO, ONTARIO--(CCNMatthews - May 4, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

ECU Silver Mining Inc. (TSX VENTURE:ECU) is pleased to announce that it has agreed to pricing for its previously announced public offering of units. ECU Silver Mining Inc.'s offering will consist of 10,870,000 units at a price of $2.30 per unit (the "Offering"). Each unit will consist of one common share and one half of one common share purchase warrant. Each full common share purchase warrant will be exercisable at $2.85 for a period of 24 months following the closing of the Offering.

If the closing price of the common shares of ECU Silver Mining Inc. on the TSX Venture Exchange is equal to or greater than $3.75 per common share for a period of 20 consecutive trading days any time after four months and one day after the date of the closing of the Offering, ECU Silver Mining Inc. may accelerate the expiry date of the warrants issued under the Offering by giving notice to the holders thereof and in such case the warrants will expire on the 30th day after the date on which such notice is given.

The securities issued under the Offering will be subject to a four month hold period in Canada.

In connection with the Offering, ECU Silver Mining Inc. will also grant to the Agents (as defined below) an option to increase the size of the Offering by up to 15% (up to 1,630,500 units) for a period of 30 days from the closing of the offering, to cover over-allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised in full, gross proceeds of the offering would be approximately $28,751,150.

The completion of the offering is subject, among other things, the approval of the Toronto Venture Stock Exchange (TSX-V) and the applicable Canadian securities commissions. Completion is expected on or about May 30th, 2007.

Blackmont Capital Inc. will act as lead agent in connection with the offering, together with a syndicate of agents which will include, CIBC World Markets Inc., Desjardins Securities Inc., TD Securities Inc. and Salman Partners Inc. (collectively the "Agents").

ECU Silver Mining Inc. (www.ecu.ca) is engaged in gold, silver and base metals exploration development, and has its mining operations in the Velardena property in Mexico. The property includes five historical mines: Santa Juana, Terneras, San Mateo and San Juanes, which are interconnected, plus the San Diego mine. The Company is currently treating development muck and vein material from stopes from the Santa Juana mine, for treatment at the Velardena mill. The Company is currently extracting vein material from one of its five historical mines and it processes its mineralized material at its own milling facilities in Velardena. The Company also maintains interests in exploration properties in north western Quebec.

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 or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Disclosure regarding forward-looking statements

Note: This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • ECU Silver Mining Inc
    Stephen Altmann
    President
    (416) 644-8640
    or
    ECU Silver Mining Inc
    Richard Buzbuzian
    Vice-President
    (416) 644-8640
    Website: www.ecu.ca