Placing of 42.5 million ordinary shares

(“Mercator Gold”, “Mercator” or “the Company”)




LONDON: 29 JUNE 2009 - Mercator Gold plc announces the placing (the "Placing") of 42.5 million new ordinary shares of 0.01p each ("New Ordinary Shares") at a price of 2 pence per share to raise £850,000 before expenses.

Old Park Lane Capital plc (“OPL”) has been appointed as Joint Broker to the Company and acted for the Company in the Placing of the New Ordinary Shares with predominantly OPL’s institutional and ultra high net worth investors, which is conditional upon, inter alia, admission of the New Ordinary Shares to trading on AIM.

The Directors of Mercator have identified, and are in the early stages of the due diligence process required to evaluate, a number of potential acquisitions and it is intended that the proceeds of the Placing may allow the Company to pursue such opportunities as and when appropriate.

Certain Directors of the Company have participated in the Placing, and now have the following shareholdings in the Company:


DirectorShares PurchasedShareholdingPercentage of Enlarged Company
Patrick Harford 1,513.500 3,516,467 3.05
Michael Silver 1,513,500 2,080,043 1.81


In order to satisfy institutional requirements, the New Ordinary Shares will be issued and admitted to AIM in three tranches. Application has been made for the admission of 17,625,000 New Ordinary Shares to AIM effective 2 July 2009. Application will be made for 17,375,000 New Ordinary Shares to be admitted to AIM on 13 July 2009 and 7,500,000 New Ordinary Shares are expected to be admitted to AIM on 27 July 2009. The New Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares currently traded on AIM. Following the third admission there will be 115,174,911 Ordinary Shares in issue.


For further information please contact:

Mercator Gold plc    
Michael Silver, Chairman    
Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.    
Old Park Lane Capital PLC    
Michael Parnes Tel: +44 (0) 20 7493 8188
Chief Executive    
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.    
Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888
Simon Rothschild    
Oliver Winters    
Cenkos Securities plc    
Adrian Hargrave Tel: +44 (0) 20 7397 8900
Beth McKiernan    
AIM: MCR    


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