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Re: News Release - Monday, May 05, 2008
ECU Silver Arranges New Debt Financing
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Toronto, Ontario, May 5, 2008 - ECU Silver Mining (TSX:ECU) ("ECU
Silver" or "the Company") is pleased to announce through a letter of
intent that it has arranged a new $10 million debt facility with IIG
Capital LLC ("IIG")based in New York.
The debt facility will have a drawdown feature which will enable the
Company to draw up to $10 million subject to certain terms and based on
its cash requirements. The debt facility will have a term of 29 months
commencing June, 2008 and will bear an annual interest at a rate equal
to the one-month London Interbank Offered Rate ("LIBOR") plus 6% but
not less than 11%. There will be no principal repayments required until
November 30, 2009 following which principal will be repayable in equal
monthly installments for 12 months. The facility will be secured by a
first mortgage covering the current mining properties of the Company's
Mexican subsidiaries. A structuring fee of 1.5% is payable to IIG.
This strategic debt facility offers ECU Silver a timely and
non-dilutive way to ensure it has sufficient liquidity to advance its
exploration and development programs. The Company's objectives are to
complete sufficient work to convert a meaningful portion of its
potential into a mineral resource category with a view to providing an
update to its N.I. 43-101 mineral resource report later in the year.
Concurrent with this new facility, the Company has also arranged for an
extension of its existing loan with IIG. Commencement of the existing
monthly repayment schedule will be deferred by 6 months from May 29,
2009 to November 30, 2009. The interest on the restructured loan will
be calculated at one-month LIBOR plus 6% but not less than 11%.
For further information please visit www.ecu.ca or contact:
CHF Investor Relations
Chris Haldane, Account Manager
Tel: (416) 868-1079 ext. 237
Email: chris@chfir.com
Michael Borovec, Account Manager
Tel: (416) 868-1079 ext. 229
Email: michael@chfir.com
To receive Company press releases, please email chichi@chfir.com and
mention "ECU News" on the subject line.
The TSX Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the content of this news release.
Forward-Looking Statements
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific
factors disclosed under the heading "Risk Factors" and elsewhere in the
Company's periodic filings with Canadian securities regulators. Such
information contained herein represents management's best judgment as
of the date hereof based on information currently available. The
Company does not assume the obligation to update any forward-looking
statement
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Copyright (c) 2008 ECU SILVER MINING INC. (ECU) All rights reserved.
For more information visit our website at http://www.ecu.ca/ or send
mailto:ecu@ecu.ca
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