Result of EGM
Mercator Gold PLC
30 August 2005
MERCATOR GOLD PLC
('Mercator Gold' or the 'Company')
Results of Extraordinary General Meetings ('EGM's')
London 30 August, 2005 - Mercator Gold Plc (AIM, MCR & MCRW)
The Company is pleased to announce that at the EGM of the shareholders held at
11:00am today, all resolutions have been passed.
The Company is pleased to announce that at the EGM of the holders of 8 pence
Warrants constituted by a warrant instrument dated 29 September 2004, held at
12:00am today, all resolutions have been passed.
Further to the Company's announcement of 5 August 2005 and the passing of the
above mentioned resolutions, the holders of 8 pence warrants (AIM, MCRW) are now
entitled to subscribe for one ordinary share at 8 pence and, for a limited time,
to receive one warrant to subscribe for one ordinary share at 10 pence. This
offer is valid up to 3pm on 13 September 2005. Thereafter the remaining 8 pence
warrants will still be valid on their original terms, the expiry date being 7
November 2005. The 10 pence warrant will expire on 7 November 2006.
Copies of the Invitation to Exercise Warrants Early are available from the
Company at Peek House, 3rd floor, 20 Eastcheap, London, EC3M 1EB and the
Company's website www.mercatorgold.com.
Patrick Harford, CEO of Mercator commented: 'The positive results from our
shareholders and warrantholders meetings mark a very encouraging note of
confidence as well as enabling the Company to continue its extended exploration
programmes at Meekatharra. I am pleased to say that the eligible directors,
where practical, intend to follow their rights under this offer.'
For further information please contact:
Mercator Gold plc
Patrick Harford, Managing Director Tel: +44 (0) 7786 486645
Terry Strapp, Chairman Tel: +61 (0) 8 9322 7422
Michael de Villiers, Finance Director Tel: +44 (0) 2079291010
Email: info@mercatorgold.com
Web: www.mercatorgold.com
Beaumont Cornish Limited
Roland Cornish / Felicity Geidt Tel: +44 (0) 20 7628 3396
Ocean Equities Limited
Will Slack Tel: +44 (0) 20 7786 4375
King & Shaxson Capital Ltd
Nick Bealer Tel: +44 (0) 20 7553 8281
Parkgreen Communications
Justine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713
Mercator operates a continuous disclosure policy with respect to exploration
results. Company news releases are based on technical information approved by
Susan Vearncombe (Company Director), BSoc.Sci, MSc(Hons), PhD, RPGeo, MAIG.
Note to editors
Mercator Gold plc was admitted to AIM on 8 October 2004, and entered into the
Annean Joint Venture with St. Barbara Mines to explore for economic gold
resources in the Annean Joint Venture area in the Meekatharra region of Western
Australia.
Under the terms of the Annean Joint Venture, Mercator Gold Pty Ltd (the
company's wholly owned subsidiary) has a right to earn a 45 per cent interest in
the Meekatharra Properties by spending AUD$3 million on exploration by 2 March
2006, with a minimum expenditure of AUD$1 million by 2 March 2005. If Mercator
earns the 45 per cent interest, it can elect to increase this interest to 51 per
cent by spending a further AUD$1 million by 2 March 2007. If Mercator earns the
51 per cent interest, it can elect to increase its interest to 70 per cent by
spending a further AUD$ 4 million by 2 March 2009. If Mercator earns the 70 per
cent interest, St. Barbara Mines must then contribute pro-rata on any further
expenditure or dilute its interest by a standard dilution formula.
Mercator recently announced that the Group has spent the first AUD$1 million and
has elected to proceed towards the first step of earning 45% with a minimum
expenditure requirement of AUD$2 million before 2rd March 2006.
SpaDiSTM is a software programme developed by Vearncombe Associates that uses
fractal technologies, including autocorrelation, to generate high-grade targets
from historic exploration data. Mercator Gold has a contractual arrangement for
the on-going use of SpaDiSTM.
The Directors have set the Company an exploration target of 2,000,000 ounces of
gold contained within four resources, each of at least 500,000 ounces within the
Annean Joint Venture area.
The Company has reported initial high-grade drilling results from the first two
target areas, Bluebird and Surprise.
Projects within the Annean Joint Venture
Yaloginda - This line of workings has been the principal source of production
for St Barbara Mines. Its 15 km x 2 km area has yielded 18 deposits in a variety
of styles of mineralization, but the open pits rarely extend below 70m depth.
Mercator will assess the geology, structure, alteration and gold distribution to
see if a super pit style of operation is realistic, and it will examine
potential for extensions of orebodies in depth. The target resource is >500,000
oz.
Nannine - Oxide deposits were mined by St Barbara with records indicated that
total gold production has exceeded 100,000 oz. The mineralization is hosted in
basalt, iron formations and granite. Again, >500,000 oz deposits are being
sought.
Kurara East - Gold mineralization is hosted in sulphidic quartz veins, mainly in
altered granite, basalt and dolerite. A 3.5 km long zone of anomalous gold
geochemistry has been identified at Bluebush and Mingah, with aircore drilling
returning some good intercepts.
Meekatharra North - Is part of a line of workings with an endowment (production
+ resources) of over 2.0 million ounces of gold. Mercator is targeting the
under-explored northern extension of this alteration zone. Mercator has outlined
an extension zone of mineralisation over 6500 meters long and containing two
prospects, Maid Marion and Nottingham.
This information is provided by RNS
The company news service from the London Stock Exchange