EcuaGold Resources Ltd.

EcuaGold Resources Ltd.

January 03, 2007 11:30 ET

EcuaGold Resources Ltd. Closes $6.9 Million Initial Public Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 3, 2007) - EcuaGold Resources Ltd. (the "Company" or "EGR") is pleased to announce that, further to its Prospectus dated December 12, 2006, the Company has closed its initial public offering (the "Offering") on December 28, 2006 for gross proceeds of $6,900,000. The Over-Allotment Option granted to the Agents was exercised in full, such that the Offering consisted of 13,800,000 units (the "Units") sold at a price of $0.50 per Unit. Each Unit consists of one common share in the capital of the Company and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase, for a period of 18 months from the date (the "Listing Date") that the Company's shares are listed for trading on the TSX Venture Exchange (the "Exchange"), one common share of the Company at a price of $0.75. The Warrants will not be traded on the Exchange.

The Company may accelerate the expiry date of the Warrants if, after the expiration of four months after the Listing Date, the closing price of the common shares of the Company on the Exchange equals or exceeds $1.25 per common share for 20 consecutive trading days, in which event, the Company may give written notice to the Agents and the Holders of the Warrants that the expiry date has been shortened to the date that is 30 days after the date of such notice.

The underwriting syndicate for the Offering was led by Blackmont Capital Inc. ("Blackmont") and Bolder Investment Partners Ltd. ("Bolder"), acting as Co-Agents, and included Pacific International Securities Inc. The Agents were entitled to receive an Agents' Commission in the amount of $552,000. The Agents have elected to take the commission in cash, save for $79,800 which was taken in Units. In addition, Blackmont has been paid a Corporate Finance Fee of $30,000 in cash.

The Agents were issued 1,725,000 non-transferable compensation options (the "Agents' Compensation Options") on the closing. Each Agents' Compensation Option entitles the Agents to purchase one unit (the "Agents' Units") at a price of $0.50 per Agents' Units for a period of 18 months from the Listing Date. The Agents' Units have the same composition and terms as the Units.

With the successful closing of the maximum offering of 12,000,000 Units, together with the full subscription of the 1,800,000 Over-Allotment Units, the Company is in receipt of gross proceeds of $6,900,000 before anticipated share issue expenses of approximately $163,000, the $30,000 Corporate Finance fee and $472,200 in Agents' Commissions paid in cash.

The Company will use the proceeds as outlined in its Prospectus dated December 12, 2006, with the majority of the proceeds to be allocated to the exploration programs on the Company's Molleturo and Curiplaya Projects in Ecuador, pursuant to NI 43-101 Reports recently completed for each of the projects, for general exploration programs on the Company's other exploration projects and for General and Administrative Expenses. A copy of the Prospectus may be found on www.sedar.com.

EcuaGold Resources Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties in Ecuador. EGR presently controls, through wholly owned subsidiaries, a 100% interest in eleven concessions, and has an option to acquire a 100% interest in a twelfth concession, comprising eight distinct projects covering a total of 31,198.84 hectares. In addition, The Company has also recently made applications with the Ministry of Energy and Mines in Ecuador for eleven additional concessions, associated with two existing exploration projects and one new exploration project, amounting to approximately 28,654.26 hectares. The Company's principal properties are the Molleturo Project, a high-grade polymetallic vein system, and the Curiplaya Project, a gold-copper porphyry system. The majority of the Company's properties are located in southern Ecuador.

The statements contained in this news release that are not purely historical are forward-looking statements. Forward-looking statements may relate to the success of any of the Company's strategic initiatives, the Company's expectations, beliefs, growth and future prospects, and the Company's position in the market and future opportunities therein. Forward-looking statements may also include, without limitation, any express or implied statement relating to future events, industry performance, general business and economic conditions or circumstances, regulatory and legal requirements, and other matters, many of which are beyond the control of the Company. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. All forward-looking statements included in this news release are based upon information available to the Company as of the date hereof and the Company does not undertake any obligations to update forward-looking statements should circumstances or management's beliefs or opinions change.

On Behalf of the Board of Directors of ECUAGOLD RESOURCES LTD.

Anthony F. Ciali, President & CEO and Director

No stock exchange has approved or disapproved the information contained herein.

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