REG - ECR Minerals PLC - Sale of Non-Core Assets

ECR MineralsAnnouncement

18/12/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231218:nRSR1081Xa&default-theme=true

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 (mailto: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)

 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISEAAAXFLFDFAA