Ecometals Limited: Sale of Condor Gold Project
December 20, 2010 at 12:08 PM EST
TORONTO, ONTARIO--(Marketwire - Dec. 20, 2010) - Ecometals Limited (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ) -
Further to its press release of 19th November 2010, Ecometals Limited (the "Company") is pleased to announce that prepayment has commenced with regards the first tranche of US$2m in respect of the sale of its Condor Gold project. The closing of the sale transaction is expected to close on or before 30th December 2010, with the balance of the first tranche paid by that date. Also, the Company reports that in an Agreement dated 15th December, Alca Gold Limited has assigned its entire interest and obligations under the restated share purchase agreement of November 19 2010 to Ecuador Capital Corp. ("ECC") also of Vancouver.
Ecometals has agree to sell its 90% shareholding in Condormining Corporation S.A. ("Condor") and Condorview S.A. ("Condorview") for the sum of US$7 million based on the following payment schedule;
1. $2,000,000 is being prepaid in tranches from today until Closing
2. $2,500,000 is payable on or before May 31, 2011;
3. $2,500,000 is payable on or before November 30, 2011.
If after the initial payment of US$2,000,000 ECC fails to make the subsequent payment(s) then the shares in Condor and Condorview will revert to Ecometals, and Ecometals will not have to refund payment(s) made by ECC up to the point of non payment.
Ecometals Limited is a Canadian TSX Venture Exchange listed mineral exploration and development company focused on mineral resources in Latin America. Apart from its gold exploration in Ecuador, Ecometals also has significant manganese, iron and gold projects in Brazil at grass roots and development planning stages.
Safe Harbour Statement:
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward looking information. Forward looking information in this news release includes statements regarding the closing of the Transaction. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure of the purchaser to secure funding to complete the purchase, failure of Ecometals and/or the purchaser to satisfy conditions of closing, risks relating to changes in economic or regulatory conditions and other risks set out in Ecometals' public documents filed on SEDAR. Although Ecometals believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Ecometals disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.