REG - Ecora Resources PLC - Four Mile Legal Ruling in favour of Ecora Upheld

Ecora ResourcesAnnouncement

04/12/2023 07:00

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RNS Number : 4874V  Ecora Resources PLC  04 December 2023

4 December 2023

 

Ecora Resources PLC

("Ecora", the "Group" or the "Company")

 

Four Mile Legal Ruling in favour of Ecora Upheld

 

Ecora (LSE/TSX: ECOR) announces the Supreme Court of Western Australia, Court
of Appeal has upheld the original, favourable, judgment by the Supreme Court
of Western Australia in Ecora's legal dispute with Quasar Resources Pty Ltd.
("Quasar"), the owner and operator of the Four Mile uranium mine over which
the Group has a 1% net smelter return ("NSR") royalty.

 

Ecora and Quasar have been engaged in a legal dispute since 2016 over the
level of allocable charges being applied to calculate NSR revenue subject to
the Group's royalty entitlement. On 13 April 2022, the Supreme Court of
Western Australia ruled in favour of the Group's position that no costs
incurred at the mine or at the Beverley plant, should be applied as permitted
allocable charges. On 1 December 2023, the Supreme Court of Western Australia,
Court of Appeal upheld the original judgement.

 

Following the initial ruling, the Group received a settlement payment of
approximately A$6 million, plus interest, that has been held as deferred
income and will be released to the income statement in Q4 2023.

 

Since April 2022, the Group has also been receiving its NSR free of any
deductions for extraction and processing, subject to the outcome of Quasar's
appeal. The Group decided that it was prudent to accrue the amounts relating
to the contested allocable charges. With the appeal having been upheld, the
Group expects to release approximately A$2.3 million of accrued income in Q4
2023.

 

A total of approximately A$9.3 million, including interest, is expected to be
released to the income statement in Q4 2023. This does not impact on the
Group's cash balances as these amounts have been received.

 

Furthermore, the Group has been awarded its legal costs of both the trial and
of the appeal, which will be assessed, if Ecora and Quasar cannot reach
agreement.

 

For further information

 

 Ecora Resources PLC                        +44 (0) 20 3435 7400
 Geoff Callow - Head of Investor Relations

 Website:                                   www.e (http://www.ecora-resources.com) cora-resources.
                                            (http://www.ecora-resources.com) com (http://www.ecora-resources.com)

 Camarco                                    +44 (0) 20 3757 4997

 Gordon Poole / Owen Roberts / Elfie Kent

 

About Ecora Resources

 

Ecora Resources is a leading royalty company focused on supporting the supply
of commodities essential to creating a sustainable future.

 

Our vision is to be globally recognised as the royalty company of choice
synonymous with commodities that support a sustainable future by continuing to
grow and diversify our royalty portfolio in line with our strategy. We will
achieve this through building a diversified portfolio of scale over high
quality assets that drives low volatility earnings growth and shareholder
returns.

 

The mining sector has an essential role to play in the energy transition, with
commodities such as copper, nickel and cobalt - key materials for
manufacturing batteries and electric vehicles. Copper also plays a critical
role in our electricity grids. All these commodities are mined and there are
not enough mines in operation today to supply the volume required to achieve
the energy transition.

 

Our strategy is to acquire royalties and streams over low-cost operations and
projects with strong management teams, in well-established mining
jurisdictions. Our portfolio has been reweighted to provide material exposure
to this commodity basket and we have successfully transitioned from a coal
orientated royalty business in 2014 to one that by 2026 will be materially
coal free and comprised of over 90% exposure to commodities that support a
sustainable future. The fundamental demand outlook for these commodities over
the next decade is very strong, which should significantly increase the value
of our royalty portfolio.

 

Ecora's shares are listed on the London and Toronto Stock Exchanges (ECOR) and
trade on the OTCQX Best Market (OTCQX: ECRAF).

 

 

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