Update re Closing of Proposed Sale of Condor Gold Project
Toronto, Ontario-19th November 2010-Ecometals Limited (TSX-V:EC)
On 12th January this year, Ecometals Limited (the "Company") announced a proposed sale of its 90% shareholding in Condormining Corporation S.A. ("Condor") and Condorview S.A. ("Condorview") for a sum of US$9 million to Alca Gold Limited. ("Alca"). The Company then negotiated a Sale and Purchase Agreement with Alca. It became clear however during this process that Alca was not going to meet the Company's objectives in terms of process and funding. Ecometals therefore considered other third party options, as well as renegotiating the agreement with Alca. As a result, the Company has finally concluded a revised agreement with Alca which it feels is an acceptable basis for concluding a sale of these assets. The main terms of the revised agreement are as follows: Alca has agreed to purchase all of the Condor Shares and Condorview shares currently held by Ecometals for an aggregate purchase price of US$7,000,000, based on the following payment schedule;
- $2,000,000 payable on or before December 15, 2010;
- $2,500,000 payable on or before May 31, 2011;
- $2,500,000 payable on or before November 30, 2011.
If after the initial payment of US$2,000,000 Alca fails to make the subsequent payment(s) then the shares in Condor and Condorview will revert to Ecometals, and Ecometals will not have to refund payment(s) made by Alca up to the point of non payment.
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