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TORONTO,
March 13, 2014 /CNW/ - Ecuador
Gold and Copper Corp. (TSX-V: EGX) ("EGX" or the
"Company") announced today that it has engaged CHF Investor
Relations ("CHF"), a highly regarded Canadian investor
relations firm headquartered in Toronto, as its IR partner, pursuant to a
services agreement (the "Services Agreement") for
investor relations and market-making for a term beginning on
March 1, 2014 ending on February 28th, 2016 whereon the
seventh month from the date of signature the Company may terminate
with 30 days' notice. The Services Agreement is subject to TSX
Venture Exchange (the "Exchange") approval.
"With a Preliminary Economic Assessment and an
updated NI 43-101 Resource estimate report pending, we feel now is
the opportune time to showcase our flagship Condor Gold Project
which already has an NI 43-101 defined Indicated resource of 6.365
million ounces of gold and a further inferred resource of 2.06
million ounces of gold. We are confident in the value inherent in
this Project even in today's gold market. I have worked with CHF in
the past and therefore know their abilities and reach into the
investment community," commented Glenn
Laing, President & CEO.
Effective March 1,
2014, the Services Agreement is for a term ending on
February 28th, 2016.
The Services Agreement may be terminated on with 30 days' notice
commencing on the seventh month from the date of signature.
Under the terms of the Services Agreement, which is subject to TSX
Venture Exchange approval, CHF will receive monthly fees of
$7,500 and reimbursement of
disbursements. CHF has been granted 500,000 EGX stock options at an
exercise price of $0.10 per share and
500,000 EGX stock options at an exercise price of $0.20 per share. The stock options granted
to CHF vest quarterly over twelve months from the date of issuance
and can be exercised for a period of five years from the date of
issuance. As is required for Tier 2 Exchange Issuers, upon
termination of the Services Agreement, options will be cancelled
after 30 days. In addition, the Company has also granted 500,000
EGX stock options pursuant to its stock option plan exercisable at
price of $0.10 per share for a period
of 5 years to its independent director, Mr. Mario Blejer, in recognition of his valuable
services as an independent director.
CHF has offered its Market Liquidity Program as
a solution to clients' illiquidity issues since 2002. The
market-making activity will be conducted using a registered broker
in compliance with Policy 3.4 of the Exchange's Corporate Finance
Manual (the "Manual"), IIROC's Universal Market
Integrity Rules & Policies (2010) and other relevant policies,
so that trading orders in the Company's shares are made to manage
share price volatility and imbalances of orders in order to improve
trading liquidity on the Exchange.
Kroy Holdings Limited, an EGX shareholder, has
provided 200,000 EGX shares in initial capital for the purposes of
market-making in accordance with Section 2.8 of Policy 3.4 of the
Manual.
Prior to the grant of options outlined above,
CHF had no direct or indirect interest in the Company or its
securities.
About Ecuador Gold and Copper Corp.
Ecuador Gold and Copper Corp. is a Canadian
exploration and mining company that is focused on five main
deposits within its Condor Gold Project which include: 1) Santa
Barbara 2) Los Cuyes 3) Soledad 4) El Hito 5) Chinapintza (Joint
Venture). The Condor Gold Project has an NI 43-101 indicated
resource of 6.365 million oz gold (averaging 0.62 g/t) and a
further inferred resource of 2.06 million oz gold (averaging 0.52
g/t).
In addition the El Hito Cu-Mo porphyry deposit
hosts an Inferred copper resource of 161 million tonnes grading
0.31% copper (1.1 billion pounds of Cu). For more
information, please see the Company's resource table at
www.ecuadorgoldandcopper.com or its Technical Report dated
effective October 16, 2013 which is
available under the Company's profile on SEDAR at
www.sedar.com.
These resources were calculated and updated by
Al Maynard and Associates Pty Ltd.
of Perth, Australia as of
October 16, 2013 and are described in
the Technical Report.
About CHF Investor Relations
CHF adds substantial financial and investment acumen and
experience, gained since the late 1970's, to public companies as an
outsourced, low-cost equivalent to an internal investor relations
department. CHF serves an international portfolio of TSX/TSX
Venture and CSE listed companies operating in a broad range of
industries including mineral exploration and producers, oil &
gas, industrial products and services, high-tech, business
solutions and products, and special situations sector.
Cautionary Note
The Company has not completed a preliminary economic assessment or
feasibility study of the Condor Gold and Copper Project under NI
43-101, and there is no assurance that the exploration and
subsequent development operations of the Condor Gold and Copper
Project will be economically or technically viable.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Ecuador Gold and Copper Corp.