REG - ECR Minerals PLC - Conditional offer for proposed sale of land

ECR MineralsAnnouncement

21/11/2024 07:00

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RNS Number : 0417N  ECR Minerals PLC  21 November 2024

21 November 2024

ECR MINERALS PLC

 

("ECR Minerals", "ECR" or the "Company")

 

Conditional offer accepted for the proposed sale of surplus land

 

ECR Minerals plc (LON: ECR), the exploration and development company focused
on gold in Australia, is pleased to announce that it has accepted, in
principle, a conditional offer of A$225,000 for the proposed sale of its
surplus land at Brewing Lane in Victoria, Australia.

 

The offer, which the purchaser will settle in cash on completion, is
conditional on the purchaser obtaining suitable financing.  The purchaser's
plans are already well advanced in this regard and the condition is expected
to be satisfied within 14 days of this announcement, whereupon the land
conveyancing process will commence.  Significantly, the transaction is being
arranged as a private sale with no real estate agent fees or commissions to be
payable by ECR.

 

The land at Brewing Lane, Springmount comprises around 20 acres and is within
ECR's Creswick licence area. However, the proposed sale is independent of
mineral rights so will have no impact on any of the Company's future
operations at Creswick.  As announced previously, ECR had previously explored
the possibility of obtaining planning permission for a residential house on
the land.  Alongside that, the Company had also investigated upgrading the
access rights.  As a result of the proposed sale, if completed, neither of
these exercises would be required and the Company would therefore have saved
both the cost and management time of proceeding with these initiatives.

 

The monies raised from this proposed sale, once completed, will be utilised to
accelerate work on the Company's near-term exploration and operational
activities. Given that the conditional offer is not binding, there can be no
certainty that final binding terms will be agreed, nor as to the timings or
final terms or quantum of consideration for the proposed sale of the land.
Further announcements will be made in due course.

 

Nick Tulloch, ECR's Chairman, said: "The proposed sale of our surplus land at
Brewing Lane is the culmination of our strategy to realise value from assets
within ECR that we are not using or do not require. The agreement in
principle represents a very cost-effective exit for ECR, with no agency
commissions and would negate the need for us to carry out work on the property
before the sale. The proceeds of the sale will be immediately reinvested in
our near-term exploration and operational activities in line with our
objective to advance the value of our assets as efficiently as possible.  As
we continue to drive growth within the business, the Board is excited about
the potentially significant opportunities presented by our assets in Victoria
and Queensland."

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

 ECR Minerals Plc                                                                                                                                                                                                                                   Tel: +44 (0) 1738 317 693
 Nick Tulloch, Chairman

 Andrew Scott, Director

 Email:

 info@ecrminerals.com
 Website: www.ecrminerals.com
 (http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ecrminerals.com%2F&esheet=51817334&newsitemid=20180605005810&lan=en-US&anchor=www.ecrminerals.com&index=1&md5=820ad49dc1fc2c84a0538453c017bc1b)

 Allenby Capital Limited                                                                                                                                                                                                                            Tel: +44 (0) 20 3328 5656
 Nominated Adviser                                                                                                                                                                                                                                  info@allenbycapital.com (mailto:info@allenbycapital.com)

 Nick Naylor / Alex Brearley / Vivek Bhardwaj

 Axis Capital Markets Limited                                                                                                                                                                                                                       Tel: +44 (0) 203 026 0320
 Broker
 Ben Tadd / Lewis Jones

 SI Capital Ltd                                                                                                                                                                                                                                     Tel: +44 (0) 1483 413500
 Broker
 Nick Emerson

 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
approximately 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), MGA 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.

 

MGA also has approximately A$75 million of unutilised tax losses incurred
during previous operations.

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