ECR MINERALS PLC: PLACING OF SHARES, ACCELERATION AND EXPANSION OF DRILLING CAMPAIGN
April 09 2021 - 1:11AM
UK Regulatory
TIDMECR
ECR MINERALS plc
("ECR Minerals", "ECR" or the "Company")
PLACING OF SHARES
ACCELERATION AND EXPANSION OF DRILLING CAMPAIGN
ECR Minerals plc (LON: ECR), the gold exploration and
development company focussed on Australia, is pleased to announce
the placing ("Placing") of 90,909,091 new ordinary shares of 0.001p
(the "Placing Shares") at a Placing price of 2.2p per share to
raise gross proceeds of GBP2,000,000.
The net proceeds of the Placing, which is conditional on
admission of the Placing Shares to trading on AIM ("Admission"),
will be used to ramp-up drilling and exploration activities on
ECR's 100%-owned gold exploration projects in Victoria, Australia
and for working capital purposes. The Placing was arranged by the
Company's joint-broker Novum Securities.
Drilling with the Company's own diamond drill rig is continuing
in the HR3 area of the Bailieston gold project in Victoria. Five
drill holes have been completed, and a sixth hole is in progress.
ECR expects to be in a position to report assay results from
initial holes later this month. Visible gold has been noted in the
hole first drilled at the Byron prospect (see announcement dated 12
February 2021).
Placees will receive one warrant ("Warrant") for every two
Placing Shares and accordingly, subject to the Placing completing,
45,454,545 Warrants will be issued by the Company. Each Warrant
permits the holder to subscribe for one new ordinary share in ECR
Minerals plc at a price of 3.75p for a period of 24 months from the
date of Admission. If all the Warrants were to be exercised, this
would generate proceeds of approximately GBP1.7 million for the
Company, although there can be no guarantee that this would
occur.
Craig Brown, Chief Executive Officer, commented:
"We are delighted by the tremendous show of support for ECR from
investors in the placing announced today. We believe this reflects
both the high degree of market interest in Victorian gold projects
generally, and ECR's success in assembling a highly prospective
portfolio of projects and establishing an in-house drilling
capability which is being put to full use.
The net proceeds of the placing announced today will take the
Company's cash position to in excess of GBP5.8 million and, in
addition to funding a modest expansion of our operational
capabilities at our Bendigo HQ in Central Victoria, will enable ECR
to drive hard towards its twin targets of establishing a maiden
JORC compliant gold resource at the Bailieston project and
completing further drilling at the Creswick project. The funds
raised will also provide ECR with the financial flexibility to
consider potential new opportunities as they arise. We are now
fully funded for these programmes and don't envisage requiring
additional equity financing for quite some time."
ADMISSION OF NEW SHARES AND TOTAL VOTING RIGHTS
Admission of the Placing Shares to trading on AIM is expected to
occur on or around 30 April 2021. Following admission, ECR's issued
ordinary share capital will comprise 985,528,390 ordinary shares of
0.001p. This number will represent the total voting rights in the
Company, and, following admission of the Placing 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.
MARKET ABUSE REGULATION
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 (MAR) (as in force in
the United Kingdom pursuant to the European Union (Withdrawal) Act
2018). 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)207 220 1666
Nominated Adviser
Katy Mitchell and James Sinclair-Ford
Tel: +44 (0)20 7399 9425
Novum Securities Limited
Broker
Jon Belliss
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. ECR is currently drilling high
priority targets on the Bailieston gold project using the Company's
own diamond drill rig. ECR has an experienced exploration team with
significant local knowledge in the Victoria Goldfields.
Following the sale of the Avoca, Moormbool and Timor gold
projects in Victoria, Australia to Fosterville South Exploration
Ltd (TSX-V: FSX), ECR has the right to receive up to A$2 million in
payments subject to future resource estimation or production at
those projects.
ECR has earned a 25% interest in the Danglay gold project, an
advanced exploration project located in a prolific gold and copper
mining district in the north of the Philippines, and holds a
royalty on the SLM gold project in La Rioja Province,
Argentina.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210408006001/en/
CONTACT:
ECR Minerals plc
SOURCE: ECR Minerals plc
Copyright Business Wire 2021
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