REG-ECR Minerals plc ECR Secures Conditional Right to Acquire Option over Phang Nga Lithium-Tantalum-Tin Project in Thailand <Origin Href="QuoteRef">ECRE.L</Origin>

ECR MineralsAnnouncement

18/12/2014 12:52

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LONDON--(Business Wire)--


ECR MINERALS plc

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

AIM: ECR 

US OTC: MTGDY 

ECR SECURES CONDITIONAL RIGHT TO ACQUIRE OPTION OVER 
PHANG NGA LITHIUM-TANTALUM-TIN PROJECT IN THAILAND

LONDON: 18 DECEMBER 2014 - ECR Minerals plc is pleased to announce that the
Company has secured the conditional right to acquire an option (the "Option")
over 98% ownership of Mae Fah Mining Co., Ltd ("Mae Fah"), a company
incorporated in Thailand which has been granted two Special Prospecting Licences
(the "SPLs") relating to contiguous areas in Phang Nga Province, southern
Thailand. The terms of the Option and the conditions on which it may be acquired
are summarised below. 

Historical exploration data indicates that the SPLs encompass a number of
pegmatite deposits bearing lithium, tantalum and tin at grades which may
indicate economic potential, subject to further evaluation. Lepidolite, a
mineral in the mica family, is the lithium mineral of interest. 

The general area within which the SPLs are located was mapped during the late
1960s by geologists from the Institute of Geological Sciences in London in a
joint programme with the Thai government. 

According to the results of the mapping, a number of unzoned lepidolite
pegmatites, including those at the tin mines of Reung Kiet and Beng I Tum (no
longer in production), occur within the SPLs. The pegmatite at the Reung Kiet
mine was reportedly traced over a distance of 1,200m and to a maximum width of
around 20m. 

A beneficiation test on a pegmatite sample from the Reung Kiet mine was carried
out at the Institute of Geological Sciences as part of the same programme. It
was found that a concentrate containing in excess of 95% lepidolite could be
prepared by froth flotation at a recovery of more than 80%, with the product
assaying in excess of 3.5% lithium hydroxide. It was noted that the pegmatite
sample contained approximately 50% lepidolite. 

The results of nine pegmatite grab samples from within the SPLs have been
obtained from the grantors of the Option. The samples were taken in 2011 and
assayed at an internationally accredited laboratory in Bangkok with the
following results for lithium, tantalum and tin. 
 
 Sample ID    Lithium (ppm)    Tantalum (ppm)    Tin (ppm)    
 L-01         1,719            220               713          
 L-02         1,123            92                1,035        
 L-03         1,471            195               800          
 L-04         259              177               538          
 L-05         35               93                769          
 L-06         4                188               787          
 L-07         >2,000*          120               805          
 L-08         905              59                631          
 L-09         >2,000*          149               691          
 
 
* The upper detection limit of the chosen method of analysis was 2,000 ppm
lithium. 

Assays in the table above pertain to samples which were not taken by or on
behalf of ECR, and should not be relied upon. 

Stephen Clayson, Chief Executive Officer of ECR, commented:

"Recent years have seen heightened interest in new lithium supply, based on
developments in battery technology and applications, particularly in electric
and hybrid vehicles. A large proportion of today`s lithium production is sourced
from the mining of pegmatite deposits, most notably at the Greenbushes mine in
Western Australia operated by Talison Lithium, which has been under Chinese
ownership since 2012. 

ECR has the opportunity to enter a brownfields district in Phang Nga, and in
addition to lithium, the tantalum, tin and rare earth metals potential of the
SPLs will be evaluated. The SPLs include several former producing tin mines, and
Thailand has a long history as a tin producer. More recently, Thailand has
become a major manufacturing centre for the global automotive industry,
particularly the Japanese manufacturers, and it is conceivable that a major
lithium project situated in Thailand might one day prove to be of significance
in the context of the automotive supply chain. 

This opportunity is the result of an intense project generation effort by the
Company that has been ongoing during 2013 and 2014, and which continues. We are
hopeful these efforts will bear further fruit in 2015. While it is important to
maintain focus on a manageable number of interests in order to efficiently
create value for shareholders, our project generation activities are intended to
make sure that ECR`s resources are being directed towards the most promising
opportunities available. 

ECR`s first step in respect of the Option will be to complete due diligence,
which will include some work on the ground in Phang Nga, and if the transaction
proceeds beyond the due diligence stage, exploration will be undertaken using
normal methods: mapping and sampling, geophysics if appropriate, and drilling of
any sufficiently promising exploration targets. The results of exploration would
help determine whether the Company is to exercise the Option." 

Summary terms of the Option

a) ECR may give notice to exercise the Option at any time during the period of
twelve months from closing (the "Option Period"). Closing shall occur upon the
satisfaction of the following two conditions: ECR having given notice to the
Sellers that the Company has completed due diligence to its satisfaction; and
the SPLs having been issued to Mae Fah. The SPLs were granted on 29 September
2014 but have yet to be issued. Issuance of the SPLs is expected to occur when,
inter alia, Mae Fah pays the requisite fees and lodges the requisite guarantee
bonds at the relevant provincial office of the Thai Department of Primary
Industries & Mines. ECR shall complete its due diligence within sixty days of 18
December 2014. 

b) Upon closing, ECR shall pay the sum of US$100,000 to the grantors of the
Option, minus any funds advanced to Mae Fah by ECR in order to obtain the
issuance of the SPLs in accordance with part a) above (such funds are
anticipated to be less than US$100,000). 

c) Consideration for the exercise of the Option shall be US$400,000, plus such
part of any funds advanced to Mae Fah by ECR in order to secure issuance of the
SPLs which is or may be recoverable by ECR or Mae Fah in future. 

d) ECR may elect to pay up to 50% of the amounts specified in parts b) and c)
above in ordinary shares of ECR at the average daily volume weighted average
price (VWAP) of the shares on AIM for the 30 trading days preceding the date on
which the payment is due. 

e) During the Option Period ECR shall have exclusive permission to explore
within the SPLs. 

f) The Option is freely assignable by ECR. 

ABOUT ECR

ECR is a mineral exploration and development company with, among other
interests, the right to earn a 50% interest in the Itogon gold project in the
Philippines. Itogon is an advanced exploration project located in a gold and
copper mining district in the north of the Philippines. 

ECR has a 100% interest in the SLM gold project in La Rioja Province, Argentina,
the exploration strategy for which is to delineate multiple medium to high
grade, low tonnage deposits suitable for advancement to production on a
relatively low capital, near term basis. 

ECR continues to review potential new investments on a highly selective basis,
with a concentration on precious, base and strategic metals projects in Asia and
South America. 

FOR FURTHER INFORMATION PLEASE CONTACT: 
 
 ECR Minerals plc                              Tel: +44 (0)20 7929 1010  
 Paul Johnson, Non-Executive Chairman                                    
 Stephen Clayson, Director & CEO                                         
 Richard (Dick) Watts, Technical Director                                
 
 
Email: info@ecrminerals.com
Website: www.ecrminerals.com 
 
 Cairn Financial Advisers LLP      Tel: +44 (0)207 148 7900  
 Nominated Adviser                                           
 Jo Turner/Liam Murray                                       
                                                             
 Daniel Stewart & Company plc      Tel: +44 (0)20 7776 6550  
 Broker                                                      
 Colin Rowbury                                               
 
 
FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be
subject to a number of known and unknown risks, uncertainties and other factors
that could cause actual results or events to differ materially from current
expectations. There can be no assurance that such statements will prove to be
accurate and therefore actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward looking statements. Any forward looking statements
contained herein speak only as of the date hereof (unless stated otherwise) and,
except as may be required by applicable laws or regulations (including the AIM
Rules for Companies), the Company disclaims any obligation to update or modify
such forward looking statements as a result of new information, future events or
for any other reason. 
 
ECR Minerals plc 

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