VANCOUVER, BRITISH COLUMBIA, Nov 10 (MARKET WIRE) --
Eaglecrest Explorations Ltd. (TSX VENTURE: EEL)(FRANKFURT: EAT) is
pleased to announce a non-brokered private placement of up to 12 million
units at a price of US$0.05 per unit to raise gross proceeds of up to
US$600,000. Each unit will be comprised of one common share in the
capital of the Company and one non-transferable share purchase warrant.
Each warrant is exercisable to purchase one additional common share in
the capital of the company for US$0.10 for a period of 12 months after
the closing of the private placement. The proceeds will be used to
continue the Company's surface trenching, geologic mapping and sampling
exploration program at its San Simon gold project in Bolivia, to initiate
negotiations for gold projects in Colombia and for general working
capital.
"This financing will provide additional exploration funding to continue
our district-wide mapping and sampling, and target-specific trenching
program at the San Simon project," said Hans Rasmussen, President and
Chief Operating Officer. "We are very excited about the new high-grade
sample results we announced on September 9, 2009 from the seven-kilometre
long Paititi-Buriti trend. Having more data from trench and surface work
will enable our drilling program to be more successful, particularly
along the Paititi-Buriti trend."
Completion of the private placement is subject to acceptance by
applicable securities regulatory authorities including the TSX Venture
Exchange.
Additionally, subject to regulatory and shareholder approval, the board
of directors of Eaglecrest wishes to consolidate the share capital to
facilitate the corporation's ability to attract new equity capital.
Management proposes that the corporation's share capital be consolidated
on the basis of ten old common shares of the Company for one new common
share of the Company. As of October 20, 2009 the Company has 433,812,034
common shares issued and outstanding. The consolidation will reduce the
number of shares issued and outstanding to 43,381,203 before taking into
account any fractional shares resulting from the Consolidation which will
be converted into whole shares as follows: any fractional share arising
upon the consolidation comprising less than one-half of one share of the
Company will be deemed to have been tendered by the registered owner to
the Company by way of a gift and for cancellation, and will be returned
to the authorized but unissued share structure of the Company; and any
fractional share arising upon the consolidation comprising greater than
or equal to one half of one share will be converted into one whole share.
"A share consolidation has been considered for some time, but it is
essential now that the Company is focusing on institutional sources of
funding for our upcoming drill program at San Simon and high-quality,
strategic acquisitions of gold projects in Colombia," said Hans
Rasmussen, President and Chief Operating Officer.
In accordance with the Company's Articles, the share consolidation must
be approved by an ordinary resolution of Shareholders at the Company's
upcoming Extraordinary General Meeting to be held on December 10, 2009.
The consolidation will be effective on the date on which the Directors of
the Company determine to carry out the consolidation, as approved by the
Exchange.
About Eaglecrest
Eaglecrest Explorations Ltd. is conducting an advanced exploration
project on its San Simon gold property, which is situated in the
Precambrian Amazon Basin shield. The Company controls mineral rights that
cover nearly 300 square kilometres on the San Simon Plateau in northeast
Bolivia. Eaglecrest's mandate is to increase shareholder value by
employing strong technical expertise both at the Board level and on the
ground to systematically explore, develop and monetize gold projects in
South American.
On behalf of the Board of Directors,
Hans Rasmussen, President and Chief Operating Officer
Additional information on the company's project is available on our
website at www.eaglecrestexplorations.com; the SEDAR website (securities
related information electronic filed with the Canadian securities
regulatory authorities) www.sedar.com.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming work
programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Contacts:
Eaglecrest Explorations Ltd.
Paul Zdebiak
604-687-7272
info@eaglecrestexplorations.com
www.eaglecrestexplorations.com
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