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Ecu Silver Completes Previously Announced Private Placement
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Toronto, July 25, 2008 --ECU Silver Mining Inc. (TSX: ECU) (the
"Company") is pleased to announce that it has closed its previously
announced non-brokered private placement for $6 million in principal
amount of 12% convertible unsecured debentures maturing on July 31,
2013 (the "Debentures").
The final terms of the Debentures include the following:
- The Debentures are convertible into common shares of the Company
("Common Shares") at the holder's option at any time prior to maturity
at a conversion price of $1.75 per Common Share (the "Conversion Price"
- The Debentures are convertible into Common Shares at the Company's
option at any time after the expiry of four months following the date
of their issuance and prior to maturity, provided that the volume
weighted average trading price of the Common Shares on the Toronto
Stock Exchange during the 20 consecutive trading days ending on the
fifth trading day preceding the date on which notice of conversion is
given is not less than $2.85.
- Prior to maturity, and subject to the holder's right to convert the
Debentures at the Conversion Price, the Debentures are redeemable at
the Company's option, subject to a premium of 15%, 10% or 5% being paid
if the Debentures are redeemed in the first, second or third year,
respectively, following the date of their issuance. No premium is
payable in connection with any redemptions occurring after the
expiration of the third year following the issuance of the Debentures.
- The holder has the right to require the Company to satisfy its
obligation to pay principal on the Debentures, in whole or in part,
through the issuance of Common Shares at the Conversion Price.
- Subject to any required regulatory approvals, the holder has the
right to require the Company to satisfy its obligation to pay interest
and any premium on the Debentures, in whole, through the issuance of
Common Shares at the market price of the Common Shares on the date of
conversion.
The net proceeds of this offering of Debentures will be used by the
Company for working capital purposes.
The offering described herein has not been registered under the U.S.
Securities Act of 1933, as amended, and the securities may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This press
release shall not constitute an offer to sell nor the solicitation of
an offer to buy nor shall there be any sale of the securities in any
state in which such offer, solicitation or sale would be unlawful.
Additional Information:
The Company is focused on the exploration, development and mining of
gold, silver and base metals at its Velarde�a District Properties in
Durango, Mexico. The area is comprised of three properties, the Main
Velarde�a Property, the Chicago Property and the San Diego Property.
The properties are located near to each other and include five
historical mines - Santa Juana, Terneras, San Mateo, San Juanes, and
the San Diego mine. The Company's goal is to establisha significant
polymetallic mineral resource in the heart of Mexico. The Company's
mission is to become a pre-eminent silver and gold producer through the
development of existing, and additional potential resources at
Velarde�a.
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
ECU Silver Mining Inc.
Stephen Altmann, President
Tel: (416) 366-2427
Email: ecu@ecu.ca
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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
Message sent on Fri Jul 25, 2008 at 2:06:31 PM Pacific Time
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