Ecu Silver completes private placement

ECU Silver Mining Inc., a Canadian-based, mid-tier, producing mining company listed on the TSX trading, 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 company has issued the final terms of the Debentures, which include that the Debentures are convertible into common shares of the company at the holder’s option at any time prior to maturity at a conversion price of $1.75 per Common Share.

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.