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Mercator Gold PLC - Placing of Shares

RNS Number : 7129Y Mercator Gold PLC 09 July 2008 MERCATOR GOLD PLC ('Mercator Gold', 'Mercator' or the 'Company') NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN Placing of Up To 10 Million New Ordinary Shares at 40p to Raise Up To #4 Million * Funds to be applied primarily for the accelerated pre-strip of the Bluebird pit LONDON - 9 July 2008: Mercator Gold plc, the growing gold producer with operations in the historic Meekatharra Goldfield in Western Australia, is pleased to announce the placing ('the Placing') of up to 10 million new ordinary shares of 10p each ('the Placing Shares') at a price of 40 pence per share to raise up to #4 million before expenses. Cenkos Securities plc and Ocean Equities Limited acted for the Company in the Placing. The Placing is conditional on admission of the Placing Shares to trading on AIM, inter alia. The Placing Shares were placed primarily with institutional investors. Application has been made for the admission of the Placing Shares to trading on AIM and it is expected that admission will occur and dealings will commence on 15 July 2008. The Placing Shares will rank pari passu in all respects with the existing ordinary shares. Following admission there will be up to 72,674,911 ordinary shares in issue. Application of Funds The funds raised will be applied primarily to the accelerated pre-strip of the Bluebird open pit. The accelerated pre-strip will allow the Company access to the major part of the Bluebird reserve more quickly. The Bluebird pit is a key component of Mercator's development strategy and contains a reserve of 1.7Mt at an average grade of 2.4g/t for 133,000 ounces Au. In comparison the Surprise deposit currently being mined by the Company contains a reserve of 827Kt at an average grade of 2.4g/t for 63,000 ounces Au. Government approval has been granted for the mining of the Bluebird deposit, and a limited quantity of mineralised material is planned to be extracted prior to the pre-strip being completed in the final quarter of 2008. Funds from the placing will also be applied for exploration and working capital purposes. Patrick Harford, Managing Director of Mercator Gold plc, comments: 'Given present market conditions it is a tremendous vote of confidence in Mercator that we were able to complete this equity offering satisfactorily. The funds raised give the Company the capital it needs to accelerate the development of the Bluebird pit, which will play an integral role in our plans to grow our production substantially.' For further information please contact: Mercator Gold plc Terry Strapp, Chairman Tel: +61 (0) 412 228 422 Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010 Email: [email protected] Website: www.mercatorgold.com Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888 Simon Rothschild Keith Irons Oliver Winters AIM: MCR Cenkos Securities plc ('Cenkos'), which is authorised and regulated in the United Kingdom by The Financial Services Authority, is acting exclusively for the Company as nominated adviser, joint broker and placing agent in connection with the Placing. Cenkos is not acting for any other person and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Cenkos or for advising any other person in relation to the Placing. Ocean Equities Limited ('Ocean'), which is authorised and regulated in the United Kingdom by The Financial Services Authority, is acting exclusively for the Company as joint broker and placing agent in connection with the Placing. Ocean is not acting for any other person and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Ocean or for advising any other person in relation to the Placing. The Placing Shares have not been, nor will be, registered under the United States Securities Act of 1933 (as amended) or under the securities legislation of any state of the United States of America or of any province or territory of Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa. There will be no public offering of the Placing Shares in the United States. Subject to certain exceptions, the Placing Shares may not be directly or indirectly offered, sold, transferred, taken up or delivered in, into or from the United States, Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa or their respective territories or possessions. This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy Placing Shares in any jurisdiction in which such offer or solicitation is unlawful. Accordingly, copies of this announcement are not being and must not be mailed or otherwise distributed or sent in or into or from the United States, Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa and any person receiving this announcement (including custodians, nominees and trustees) must not distribute or send it in or into or from the United States, Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa. This announcement has not been approved by Cenkos or Ocean for the purposes of section 21 of the Financial Services and Markets Act 2000. This announcement has not been examined or approved by The Financial Services Authority or the London Stock Exchange or any other regulatory authority. This information is provided by RNS The company news service from the London Stock Exchange END IOEILFLSDAIAIIT

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Price: 0.635

Market: ASX
Market Cap: $182.08 m
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