RTRS : Mercator Gold Plc Sale of Interest in Silver Swan Group Limited
MERCATOR GOLD plc
("Mercator Gold", "Mercator" or "the Company")
Sale of Interest in Silver Swan Group Limited
Silver Swan Group Ltd ("Silver Swan") announced on 28 September 2009 that eight
million shares held by Mercator will be released from escrow and placed equally
with Citywest Corp Ltd and Hillgrove Resources Ltd, both of which are already
shareholders in Silver Swan.
In accordance with the Australian Listing Rule 3.10A, these shares will be
released from escrow within ten business days of the announcement.
Mercator announces that the sale of these eight million shares to existing
shareholders in Silver Swan was negotiated through the offices of Credit Suisse
in Melbourne. This sale will realise AU$2.64m.
Earlier, Silver Swan had released from escrow two million shares of which
Mercator has sold one million at an average price of AU$ 0.349 raising
approximately AU$315k.
The total achieved to date from these sales therefore amounts to AU$2.99m or
approximately £1.50m.
Mercator still holds one million shares in Silver Swan and additionally it holds
four million performance shares in Silver Swan, the issue of which are subject
to the identification of an independently calculated Indicated Mineral Resource
of 350,000 of gold or other metal equivalent by Silver Swan from the tenements
acquired from Mercator in April 2008.
Mercator intends to use the proceeds of the sales to fund on-going Mercator
corporate undertakings particularly the work at the Copper Flat Project in New
Mexico and potential future investments.
Managing Director, Patrick Harford said:
"Mercator`s task of adding value to our investments has been demonstrated by the
disposal of a proportion of our holding in Silver Swan Group Limited.The sale of
nine million shares substantially strengthens the Company`s balance sheet and
puts the Company in a position to take several projects forward over the next
six months."
For further information please contact
Mercator Gold plc
Michael Silver, Chairman Tel: +44 (0) 20 7929 1010
Patrick Harford, Managing Director
