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Epic & Msn data
Epic MCR
Time: 16:30:10
Mid Price: 2.63
Change Today: 0.00
Change % Today: 0.00
Fifty Two Week High: 7.88
Fifty Two Week Low: 1.88
Market Capital: 4.23
Period & price data
Period Price
Now: 2.63
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: AIM
Sector: General Mining - Gold
Epic: MCR
News: Latest news
Web Site: Mercator Gold
Other Articles: 15-03-201012-03-201002-03-2010

Mercator Gold

Mercator Gold plc is a diversified mining investment company with quality assets and the capability to undertake significant, value accretive transactions. Mercator is dedicated to creating value for its shareholders through a process of finding value, adding value and realising value. In order to achieve this, Mercator is able to access a pipeline of projects sourced from its global network and utilises the expertise of its directors and advisers.

Mercator holds an exclusive option over the Copper Flat project, a porphyry copper-molybdenum-gold-silver deposit in the Las Animas mining district of New Mexico, United States and a former producing mine. It is believed that the Copper Flat project, which has significant infrastructure in place, could be brought back into production within a relatively short timeframe for a relatively low capital outlay.

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Thursday, October 08, 2009

Mercator Gold appoints Deutsche Bank for ADR programme, hires SRK to undertake resource assessment of Copper Flat Project

by Jamie Ashcroft company news image

Mercator Gold Plc (AIM: MCR) announced the appointment of Deutsche Bank as its depositary bank, to issue American Depositary Receipts (ADRs). Mercator intends to expand its North American investor base as they continue to make progress on the emerging Copper Flats development in New Mexico. In the same breath, Mercator also announced that it had mandated SRK Consulting to complete a NI 43-101 compliant resource Assessment to progress the latest project.


Investors have welcomed the news in this morning’s buoyant equity market, Mercator Gold’s share price jumoped over 20% following this morning’s announcement.


Deutsche Bank is a global investment bank, its Trust & Securities Services business provides depositary services for ADR’s and GDRs, to provide its clients listings on the New York, Nasdaq, London, Luxembourg, Singapore or Dubai stock exchanges by means of depositary receipts.


Mercator’s ADRs will be traded on the US OTC Market in order to facilitate easier access for North American investors to buy equity in the junior exploration and development company. Each ADR represents 200 ordinary shares in Mercator and under current registration Mercator can issue up to 250,000 ADRs representing up to 50,000,000 ordinary shares.


An American Depository Receipt (ADR) represents a specific quantity of an underlying asset, in this case 200 Ordinary Shares in Mercator Gold, however an ADR can be denominated in a different currency, usually US Dollars and as such any subsequent income paid to investors is converted and paid in Dollars. Through their indirect ownership, holders of an ADR typically receive all the usual rights as ordinary share holders, however the specific terms of each ADR programme can vary.


Through this process Mercator will be introduced to US investors and thus increase the Company’s profile and liquidity.


Additionally Mercator announced the commissioning of SRK Consulting Inc to carry out an NI 43-101 compliant Preliminary Assessment of the Copper Flat Project. The project has historical reserves of 50Mst (million short tons) of ore which were generated over many years by engineering firms such as Behre Dolbear Group and Pincock Allen & Holt.  Mercator intends SRK to carry out an independent reassessment of the reserves using up-to-date resource estimation techniques to ensure they meet the highest standards.


The estimated cost of the assessment is US$170,000 with completion expected in the first quarter of 2010. The investment to provide an updated NI 43-101 compliant resource will assist the Company in its development of the project and clarify Mercator’s various options for the project’s financing.


In August, Mercator paid $150,000 to secure its option agreement for the project.  Mercator has six months to complete due diligence, and if it decides to move ahead with the project, will pay US$9.85 million over a period of 12 months from 14 February 2010.


Mercator is considering an open pit mine treating up to 6 million short tons per annum to produce 30-45 million pounds of copper per annum.


A proportion of the development at the copper flats project is expected to be funded following the divestment of Mercator’s Meekatharra asset. The Company expects to be in a position to update shareholders on the status of the negotiations concerning the status of the Meekatharra asset in Western Australia during the month of October 2009.


Last month Mercator announced the realisation of proceeds from the sale of its shares in the Silver Swan Group, to date Mercator has received AU$2.99m (£1.5m).


In his accompanying Mercator Managing Director, Patrick Harford commented on their latest developments as the company make progress towards expanding their investor base and the development of new projects.


‘’The Copper Flat Project, located in New Mexico, represents an attractive option on the copper price for North American Investors so our corporate push into that market is logical. The ADR mechanism will give investors there an opportunity to share in the additional value we hope to add through the technical work to be carried out by SRK.”

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