ECR Minerals PLC Sale of Non-Core Assets (1081X)
December 18 2023 - 1:05AM
UK Regulatory
TIDMECR
RNS Number : 1081X
ECR Minerals PLC
18 December 2023
ECR MINERALS plc
("ECR Minerals" or the "Company")
Sale of Non-Core Assets
ECR Minerals plc (LON:ECR), the exploration and development
company focused on gold in Australia, is pleased to confirm that
its subsidiary, Mercator Gold Australia Pty Limited ("Mercator"),
has agreed to effect the sale of two under-utilised non-core
assets.
Drilling Rig
Mercator has signed an agreement to dispose of its Coretech
Drilling Rig with a mining operations company under a hire purchase
arrangement. The total consideration is A$350,000 of which Mercator
will receive A$53,000 on the start date of the arrangement, being 1
January 2024, with a further A$33,000 due every month thereafter
for nine months until title in the asset transfers. The full
payment obligations under the agreement are guaranteed by a related
company to the purchaser.
Excavator
At the same time, Mercator has successfully sold an excavator at
auction for a price of A$70,000. These funds have been received by
Mercator.
Additional Disposals
The remaining non-core asset that ECR plans to sell is 20 acres
of land in Victoria. The Board has determined to apply for in
principle planning permission for a residential house to be built
on the land. If such planning permission is granted then the Board
expects the appeal of the land to increase to prospective buyers.
The cost of planning permission is modest with timing likely to be
in the first half of 2024. Further updates will be provided as
appropriate.
The monies raised from these sales will be utilised to progress
work on the Company's portfolio.
ECR Managing Director Nick Tulloch commented: "We have had a
stated plan to realise value from assets within ECR that we are not
using or do not require. Finalising these two agreements before the
end of 2023 exceeds our expectations on timing but the fact that
the expected proceeds from these sales should exceed our G&A
expenses for the coming year is particularly pleasing. It is a
little over three months since Mike Whitlow and I joined the
Company. In that time, we have recapitalised the Company,
re-positioned our portfolio to be more cost-effective, commenced a
drilling campaign and now realised funds from non-core assets. We
believe 2024 holds a great deal of promise for ECR and we look
forward to updating shareholders on our ongoing progress."
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 km2 over a relatively unexplored area in Lolworth
Range, Queensland, Australia. The Company has also submitted a
license application at Kondaparinga which is approximately 120km2
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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END
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