TIDMECR
ECR MINERALS plc
("ECR Minerals", "ECR" or the "Company")
SALE OF EXPLORATION LICENCES
ECR Minerals plc (LON: ECR), the gold exploration and
development company focussed on Australia, is pleased to announce
the sale by ECR's wholly owned Australian subsidiary Mercator Gold
Australia Pty Ltd ("MGA") of the licences comprising the Avoca,
Moormbool and Timor gold exploration projects (the "Licences") in
Victoria, Australia to Fosterville South Exploration Ltd
("Fosterville South") for total potential cash consideration of up
to A$2.5 million.
Fosterville South, which recently listed on the TSX Venture
Exchange with the code FSX, has agreed to acquire MGA's 100%
ownership of the Licences by way of Currawong Resources Pty Ltd, a
wholly owned subsidiary of Fosterville South, for the following
consideration:
1. A$500,000 in cash to be paid to MGA immediately;
2. A further payment of A$1 for every ounce of gold or gold
equivalent of measured resource, indicated resource or inferred
resource estimated within the area of one or more of the Licences
in any combination or aggregation of the foregoing, up to a maximum
of A$1,000,000 in aggregate;
3. A further payment of A$1 for every ounce of gold or gold
equivalent produced from within the area of one or more of the
Licences, up to a maximum of A$1,000,000 in aggregate.
Craig Brown, Chief Executive Officer of ECR, commented: "We are
delighted to sell these non-core but high-potential licences to
Fosterville South, while maintaining exposure to upside from the
Licences as a result of future resource estimation or
production.
We believe Fosterville South is well placed to advance the
Licences with its strong local exploration team and backing from
North American high-net worth and institutional investors, while
ECR will continue to concentrate its resources on our core projects
in Victoria, Bailieston and Creswick.
The initial cash to be received from this disposal, in addition
to the recently announced placing for GBP500,000, puts ECR in a
robust working capital position which we can apply toward
development of our core projects.
It is worth noting that other external parties are currently
reviewing data on our Bailieston and Creswick gold projects with a
view to potential commercial transactions, including joint venture
opportunities, although there can be no guarantee that any
transaction will occur. In addition, whilst ECR remains open to
transactions on these licence areas, the ECR board believe both to
hold considerable potential and inherent value for the
Company."
Further Information
The Licences comprise exploration licences EL5387 (Avoca
project), EL006280 and EL006913 (Moormbool project), and EL006278
(Timor project) in Victoria, Australia.
The book value of the Licences as derived from ECR's unaudited
management accounts for the period ended 30 March 2020 was
approximately A$282,000, which is the equivalent of approximately
GBP144,000, based on GBP1 = A$1.9626*. No turnover, profits or
losses are attributable to the Licences.
The maximum potential cash consideration receivable by MGA in
respect of the sale of the Licences is A$2.5 million, which is the
equivalent of approximately GBP1.275 million, based on GBP1 =
A$1.9626*
The Company intends that the consideration to be received
immediately, and any future consideration received, will be applied
by ECR to augment its ongoing working capital position as well as
towards its exploration and development activities.
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.
*Exchange rate derived from closing price on Bloomberg at 17
April 2020.
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
ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR's
wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd
has 100% ownership of the Bailieston and Creswick gold projects in
central Victoria, Australia and the Windidda project in the Yilgarn
region, Western 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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200420005348/en/
CONTACT:
ECR Minerals plc
SOURCE: ECR Minerals plc
Copyright Business Wire 2020
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