TIDMECR
17 December 2018
ECR MINERALS plc
("ECR Minerals", "ECR" or the "Company")
STRATEGIC FINANCING AND BUSINESS UPDATE
ECR Minerals plc (LON:ECR) the precious metals exploration and
development company is pleased to announce details of a strategic
financing and business update for shareholders.
Highlights:
-- ECR Minerals has secured a strategic financing raising GBP680,000
through the issue of 97,142,857 new ordinary shares at 0.70p per
share
("Financing Shares");
-- Allowing for the existing cash at bank and the funds raised today, ECR
has sufficient working capital against enhanced operational
plans,
until at least Q2 2020;
-- Each strategic financing share has a warrant attaching to subscribe
for a further new ordinary share in ECR Minerals plc at a price
of
1.125p within two years of the admission date of the above
financing
shares resulting in the issue of 97,142,857 1.125p warrants;
-- Should all warrants be converted this financing would generate in
excess of GBP1.77m before expenses for the Company;
-- In addition, the directors of the Company (David Tang and Craig Brown)
would like to subscribe a combined total of GBP20,000 in
addition to the
above on the same terms as the Placing, subject to the outcome
of
regulatory approval. A further announcement will be made if
they
proceed;
-- Should the 5 day volume weighted average share price ("VWAP") of ECR
exceed 5.0p (five pence) the Company will have the right to
accelerate
conversion of any outstanding warrants;
-- The additional funds raised will be primarily applied to expansion of
Australian operations including:
Additional extensive exploration programmes at the Company's
gold
projects in Victoria Region;
This will include 4,000 metres of reverse circulation drilling
at
Blue Moon, Creswick and Black Cat prospects and 1,400 metres
of
scout drilling at Avoca prospect;
Review and due diligence of new corporate acquisition or
business
development opportunities in strategic and precious metals
in
Victoria and elsewhere in Australia.
-- Further updates to the market will be provided in the near term
regarding the above Australian operational activities. In
addition,
following a further positive board visit to Argentina just
completed,
the Company expects to provide an update on Argentinian
activities and
opportunities, early in the new year.
Craig Brown, Chief Executive Officer of ECR Minerals plc,
commented: "I am pleased to announce this additional financing
which adds to the money raised in July and considerably bolsters
our balance sheet working capital at a key time for the ECR
business.
Market conditions in the resource sector have been challenging
in the latter half of 2018, for companies of our size and we
believe the ability to source additional financing at this time is
a validation of our business model and plans.
ECR is in a financially robust position and can now push ahead
with exploration and development across the business. In this
regard ECR has a portfolio of projects in Australia which have
yielded highly positive exploration results during our 2018 work
programmes and deserve a proactive exploration approach.
We believe our gold interests in Victoria region in Australia
have been validated by the large licence application submitted by
Newmont Mining Pty Limited adjacent to our Bailieston and Moormbool
projects. Moreover work at our Creswick project has revealed,
through exploration mapping, a large gold system with exciting
potential.
We have added additional ground with complementary licence
applications recently announced, and we have more opportunities for
new licences and new corporate activity to further bolster our
business. The extent of our new opportunity pipeline is such that
we are taking time to carefully select the primary
opportunities.
Notwithstanding challenging conditions of late and what we
perceive to be a general retrenchment in activity across the
resource sector due to funding limitations, shareholders in ECR can
be assured that the Company is well financed and operationally
active, and we look forward to updating shareholders in due course
on our activities."
FURTHER INFORMATION
STRATEGIC FINANCING
ECR has secured a strategic financing raising GBP680,000 through
the issue of 97,142,857 new ordinary shares at a price of 0.70p per
share to support proactive development of its existing interests
and to enable the Company to engage with new opportunities,
principally in respect of Australian gold and strategic metal
exploration.
Each strategic financing share has a warrant attaching to
subscribe for a further new ordinary share in ECR Minerals plc at a
price of 1.125p within two years of the admission date of the above
financing shares. Should the 5 day VWAP of ECR exceed 5p, the
Company will have the right but not the obligation to accelerate
the remaining warrants by issuing a 7 day notice of accelerated
exercise to warrant holders. Any warrants not exercised after the 7
day notice period would lapse.
In addition, the directors of the Company (David Tang and Craig
Brown) have indicated they would like to subscribe a combined total
of GBP20,000 in the Placing, subject to regulatory confirmation. A
further announcement will be made if they proceed.
ADMISSION OF STRATEGIC FINANCING SHARES AND TOTAL VOTING
RIGHTS
Admission is expected to occur on or around 21 December 2018.
Following Admission of the Financing Shares, ECR's issued ordinary
share capital will comprise 442,983,640 ordinary shares of 0.001
pence. This number will represent the total voting rights in the
Company, and, following admission of both the placing and
subscription shares, may be used by shareholders as the denominator
for the calculation by which they can determine if they are
required to notify their interest in, or a change to their interest
in, the Company under the Financial Conduct Authority's Disclosure
and Transparency Rules. The new shares will rank pari passu in all
respects with the ordinary shares of the Company currently traded
on AIM.
COMPETENT PERSON STATEMENT
The information in this announcement that relates to Exploration
Results is based on information compiled by Dr Rodney Boucher of
Linex Pty Ltd. Linex Pty Ltd provides geological services to
Mercator Gold Australia Pty Ltd, including the services of Dr
Boucher, who has a PhD in geology, is a Member and RPGeo of the
Australian Institute of Geoscientists and is a Member of the
Australian Institute of Mining and Metallurgy. Dr Boucher has
sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves'. Dr
Boucher consents to the inclusion in the announcement of the
material based on his information in the form and context in which
it appears.
ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR's
wholly owned Australian subsidiary Mercator Gold Australia has 100%
ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor
gold exploration licences in central Victoria, Australia.
ECR has earned a 25% interest in the Danglay epithermal gold
project, an advanced exploration project located in a prolific gold
and copper mining district in the north of the Philippines. An
NI43-101 technical report was completed in respect of the Danglay
project in December 2015 and is available for download from ECR's
website.
ECR's wholly owned Argentine subsidiary Ochre Mining has 100%
ownership of the SLM gold project in La Rioja, Argentina.
Exploration at SLM has focused on identifying small tonnage
mesothermal gold deposits which may be suitable for relatively
near-term production.
MARKET ABUSE REGULATIONS (EU) No. 596/2014
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the
publication of this announcement via Regulatory Information Service
(RIS), this inside information is now considered to be in the
public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc Tel: +44 (0)20 7929 1010
David Tang, Non-Executive Chairman
Craig Brown, Director & CEO
Email:
info@ecrminerals.com
Website:www.ecrminerals.com
WH Ireland Ltd Tel: +44 (0)161 832 2174
Nominated Adviser
Katy Mitchell/James Sinclair-Ford
SI Capital Ltd Tel: +44 (0)1483 413500
Broker
Nick Emerson
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such
statements may be subject to numerous known and unknown risks,
uncertainties and other factors that could cause actual results or
events to differ materially from current expectations. There can be
no assurance that such statements will prove to be accurate and
therefore actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward looking statements. Any
forward-looking statements contained herein speak only as of the
date hereof (unless stated otherwise) and, except as may be
required by applicable laws or regulations (including the AIM Rules
for Companies), the Company disclaims any obligation to update or
modify such forward-looking statements because of new information,
future events or for any other reason.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181216005029/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
December 17, 2018 02:00 ET (07:00 GMT)
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