ECU Silver Mining Inc.
TSX VENTURE : ECU

ECU Silver Mining Inc.

November 08, 2005 09:07 ET

ECU Silver Mining Inc.-Press Release

ROUYN-NORANDA, QUEBEC--(CCNMatthews - Nov. 8, 2005) - ECU Silver Mining Inc. ("ECU Silver") (TSX VENTURE:ECU) is pleased to announce that it has entered into an agreement to sell, on a private placement basis, up to 14.3 million units ("Units"), with arm's length subscribers for gross proceeds of up to CDN$5,005,000 million the "Private Placement"). The "best efforts" Private Placement is intended to be for a maximum of 14.3 million units at a price of $0.35 per Unit and is subject to regulatory approval. Each Unit will consist of one (1) common share in the share capital of ECU Silver (a "Common Share") and half (1/2) of a Common Share purchase warrant (a "Purchase Warrant") entitling the subscriber to acquire, with each whole Purchase Warrant, one (1) Common Share at a price of $0.50 for a period of two years following the initial closing (the "Closing") of the Private Placement.

ECU Silver is seeking protection of the issuance price from the TSX Venture Exchange (the "TSX-V") and will file a Private Placement notice form with the TSX-V within thirty (30) days from the date hereof. The issuance price was determined by ECU in accordance with the minimum pricing requirements of the TSX-V.

Union Securities Ltd. ("Union") will act as lead agent in connection with the Private Placement. In consideration for their services, Union will receive a cash commission of 8% of the gross proceeds of the Private Placement and a number of broker warrants equal to 10% of the number of Units sold pursuant to the Private Placement. Each broker warrant will entitle Union to acquire one Common Share for a period of two years following the initial Closing. Agents will also be entitled to an over-allotment option to purchase up to 15% of the Units issued on Closing, at a price equal to $0.35 per Unit, at any time within 10 days of the Closing, which will provide further gross proceeds of up to an additional CDN $750,750.

The net proceeds of the offering will be used to fund the Company ongoing exploration and development program of the Velardena property in the state of Durango, Mexico, and for general working capital purposes.



Head Office
Rouyn-Noranda
Quebec, Canada
J9X 7C8
Tel : (819) 797-1210
Fax : (819) 797-1214


Mexico Office
J. I. Jimenez 663
colonia Los Angeles
Torreon, Coahuila,
Mexico, 27000
Tel: (01152)-871-717-8633
Fax: (01152)-871-718-5025


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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