ECU Silver Mining Inc.
TSX VENTURE : ECU

ECU Silver Mining Inc.

May 03, 2007 16:07 ET

ECU Silver Mining Inc.: Announces Up to $25 Million Private Placement Led by Blackmont Capital Inc.

TORONTO, ONTARIO--(CCNMatthews - May 3, 2007) -

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

ECU Silver Mining Inc. (TSX VENTURE:ECU) has announced an agreement with a syndicate of agents led by Blackmont Capital Inc and including CIBC World Markets Inc., Desjardins Securities Inc., TD Securities Inc. and Salman Partners Inc. to raise up to $25,000,000 by way of a marketed private placement of units. Each unit will consist of one common share and one half of a common share purchase warrant. Each full common share purchase warrant will be exercisable for a period of 24 months following closing. Pricing of the offering will be determined in the context of the market.

The Agents will receive a cash fee equal to 6% of the gross proceeds raised from the placement.

Completion of the private placement is subject to certain conditions, including satisfactory due diligence by the Agents and receipt of all necessary regulatory approvals.

The net proceeds of this private placement will be used to advance the company's Mexican silver properties. Closing of the private placement is expected on or about May 30th, 2007.

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 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 Buzbuzbian
    Vice President
    (416) 644-8640
    Website: www.ecu.ca