Ecuador Gold Announces Increase of Unit Offering to $200,000 and Closing of the 1st Tranche of $160,000
Toronto, Ontario--(Newsfile Corp. - December 15, 2014) - Ecuador Gold & Copper Corp. (TSXV: EGX) (the "Company"), is pleased to announce that it is increasing its unit offering (the "Unit Offering"), as first announced on November 14, 2014, to increase the maximum proceeds of the Unit Offering from $160,000 to $200,000. Accordingly, under the Unit Offering, the Company is now offering a maximum of up to 4,000,000 units of the Company (each, a "Unit") (the "Maximum Offering") to a minimum of 3,200,000 Units (the "Minimum Offering") at a price of $0.05 per Unit. Each Unit is comprised of one common share and one-half common share purchase warrant (each whole warrant a "Warrant") of the Company, and each Warrant entitles the holder to acquire one additional common share of the Company at an exercise price of C$0.10 per share for 24 months following the date of issuance. As the Company has already received subscriptions totalling $160,000, it is closing the first tranche of the Unit Offering today raising the minimum of $160,000 through the sale and issuance of 3,200,000 Units at a price of $0.05 per Unit. The Company expects to close the final tranche of the increased Unit Offering on Friday, December 19, 2014.
The Unit Offering is being allocated to subscribers on a "first come, first served" basis wherein the subscribers who are first to submit a completed subscription agreement and pay the corresponding subscription proceeds will be accepted up until the Maximum Offering amount is reached. As before, all proceeds of the Unit Offering, for both the Minimum Offering and the Maximum Offering, will be used for exploration and development of the Company's Condor Gold Project or as additional working capital for the Company.
The Unit Offering remains subject to the policies and approval of the TSX Venture Exchange and will be conducted largely in reliance of the new private placement exemption for existing shareholders of the Company (the "Existing Shareholder Exemption"). The Existing Shareholder Exemption allows the Company to issue Units to existing shareholders other than residents of Ontario, Newfoundland and the United States who subscribe under the Unit Offering for not more than $15,000 per investor. Certain subscribers from Ontario and the United States are able to participate in the Unit Offering as "accredited investors" in those jurisdictions. The Company is pleased to use this new Existing Shareholder Exemption as an opportunity to reach out to its existing investors to provide them with this opportunity and raise proceeds without incurring any finder's fees or commissions.
For further information about the Unit Offering and the Company, please contact:
| Jeanny So | Glenn Laing |
| CHF Investor Relations | President and Chief Executive Officer |
| Telephone: (416) 868-1079 | Telephone: (647) 865-3101 |
| Email: jeanny@chfir.com | Email: glaing@ecuadorgoldandcopper.com |
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