ECR Minerals PLC Termination of option to acquire Hurricane Project (8622Q)
October 20 2023 - 10:56AM
UK Regulatory
TIDMECR
RNS Number : 8622Q
ECR Minerals PLC
20 October 2023
ECR MINERALS plc
("ECR Minerals" or the "Company")
Termination of option to acquire the Hurricane Project
ECR Minerals plc (LON:ECR), the exploration and development
company focused on gold in Australia, announces that it has today
terminated its option to acquire the Hurricane project.
As announced on 27 October 2022, ECR was granted an option to
acquire the entire issued share capital of Placer Gold Pty Limited,
which is the beneficial holder of three granted mining tenements
located in NE Queensland, together known as the Hurricane Project
(the "Option"). Following the change of board announced on 15
September 2023, the Company had negotiated an extension to the
Option period which was designed to give the new management team
more time to analyse and review the project.
ECR has today sent a formal notification that it no longer
intends to exercise its option to acquire Placer Gold Pty Limited.
Although preliminary results from ECR's due diligence show promise,
in the opinion of the board of directors, the potential value to
ECR of the Hurricane project cannot be justified against the
previously agreed acquisition terms. The vendors have indicated
that they are prepared to make some adjustments to the terms but,
nevertheless, it is the board's view that the two parties remain
some distance apart and that the Company's time and resources
should now be redeployed to other opportunities that could deliver
higher returns.
ECR Managing Director Nick Tulloch commented: "The Hurricane
project has been a feature of ECR's strategy for almost a year now
and terminating the option to acquire it was not a decision that we
took lightly. It is evident that that Hurricane has some excellent
prospects but the combination with ECR is not right at this time.
Results from our due diligence to date have been encouraging but
the size and cost of the opportunity is very significant to ECR and
we simply cannot justify the value placed on the transaction. I
recognise this news may surprise some of our investors but we are
determined to rebuild value in ECR and, however hard the decision
may be, we will not proceed with projects that are not in the best
interests of shareholders."
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc Tel: +44 (0) 20 7929 1010
David Tang, Non-Executive Chairman
Nick Tulloch, Managing Director
Andrew Scott, Director
Email:
info@ecrminerals.com
Website: www.ecrminerals.com
WH Ireland Ltd Tel: +44 (0) 207 220 1666
Nominated Adviser
Katy Mitchell / Andrew de Andrade
SI Capital Ltd Tel: +44 (0) 1483 413500
Broker
Nick Emerson
Novum Securities Limited Tel: +44 (0) 20 7399 9425
Broker
Jon Belliss
Brand Communications Tel: +44 (0) 7976 431608
Public & Investor Relations
Alan Green
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company.
ECR's wholly owned Australian subsidiary Mercator Gold Australia
Pty Ltd ("MGA") has 100% ownership of the Bailieston and Creswick
gold projects in central Victoria, Australia, has six licence
applications outstanding which includes one licence application
lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration
Pty Ltd ("LUX") which has three approved exploration permits
covering 946 km(2) over a relatively unexplored area in Lolworth
Range, Queensland, Australia. The Company has also submitted a
license application at Kondaparinga which is approx 120km(2) in
area and located within the Hodgkinson Gold Province, 80km NW of
Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold
projects in Victoria, Australia to Fosterville South Exploration
Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor
projects to Leviathan Gold Ltd (TSX-V: LVX), Mercator Gold
Australia Pty Limited has the right to receive up to A$2 million in
payments subject to future resource estimation or production from
projects sold to Fosterville South Exploration Limited.
ECR holds a 90% 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, which has a 43-101
compliant resource. ECR also holds a royalty on the SLM gold
project in La Rioja Province, Argentina and can potentially receive
up to US$2.7 million in aggregate across all licences.
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