Monday 29 June 2009

Mercator Gold raises £850,000 in institutional placing for potential acquisitions

Mercator Gold PLC (AIM: MCR) announced an institutional placing of 42.5 million new ordinary shares at 2 pence, raising £850,000 to help finance potential acquisitions.

In a statement, Mercator said it has identified, and is in the early stages of the due diligence process required to evaluate, a number of potential acquisitions. The proceeds of the placing may allow the company to pursue such opportunities as and when appropriate.

Chairman Michael Silver took part in the placing, taking 1,513,500 new shares. He now holds 2,080,043 shares, or 1.81 of the enlarged share capital. Managing director Patrick Harford took the same amount of new shares, thus raising his holding to 3,516,467 shares, or 3.05 pct.

Additionally, management has secured a buyer for the purchase of an existing 7,998,268 shares for £160,000.

Harford commented: “We are very encouraged by the continued support of our existing shareholders and we welcome our new investors in this placing, which provides the company with the financial flexibility to pursue new projects of merit.”

www.proactiveinvestors.co.uk

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