REG - ECR Minerals PLC - Subscription to raise £950,000

ECR MineralsAnnouncement

25/11/2024 07:00

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RNS Number : 4850N  ECR Minerals PLC  25 November 2024

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION
(EU) NO. 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS
CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

ECR MINERALS PLC

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

 

Subscription to raise £950,000

 

ECR Minerals plc (LON: ECR), the exploration and development company focused
on gold in Australia, is pleased to announce that it has raised, subject only
to Admission, £950,000 before expenses through a subscription of a total of
287,878,787 new ordinary shares of 0.001 pence each in the Company ("Ordinary
Shares") at a price of 0.33 pence per new Ordinary Share (the "Subscription
Price") (together the "Subscription").

 

The Subscription Price represents a discount of approximately 20.5 per cent.
to the closing middle market price of 0.415 pence per Ordinary Share on 22
November 2024, being the latest practicable business day prior to the
publication of this announcement.

 

The new Ordinary Shares will be issued using the Directors' existing share
allotment authorities, as approved at the Company's annual general meeting
held on 23 April 2024.

 

The net proceeds from the Subscription will primarily be used to advance ECR's
projects in Victoria and Queensland during 2025, specifically:

 

·    Concluding the proposed sale of the Company's tax losses which are
held in the Company's subsidiary Mercator Gold Australia Pty Ltd ("MGA") - ECR
is currently in exclusive negotiations with a prospective purchaser

·    Completing the commercialisation assessment of production at Blue
Mountain during the first quarter of 2025 - the independent report from Gekko
Systems Pty Limited announced on 8 October 2024 demonstrated a 91.7% gold
recovery into 0.40% of the mass

·    Preparing Blue Mountain to be capable of production and revenue
generation by the end of the first half of the year

·    Re-starting the field campaign in Lolworth in the second quarter of
2025, drawing on the Company's partnership with the Geological Survey of
Queensland ("GSQ") to further investigate the critical minerals potential at
the project

·    Subject to the forthcoming results from the diamond drilling campaign
at Tambo, which are due in the coming weeks, preparing a follow up and
potentially more detailed campaign at Tambo

·    Further investigations of ECR's prospective antimony potential at
Bailieston where a 32% (best) core sample was reanalysed from historical data

 

Following completion of the Subscription, ECR will be funded for its planned
activities in 2025.

 

Nick Tulloch, Chairman, said: "Through the Subscription we will be funded for
our planned 2025 programme, meaning that whilst we seek to conclude what could
be a valuable sale of our tax losses, held in our subsidiary MGA, we can
commence detailed preparations for the coming year.  A particular highlight
is our intention to prepare Blue Mountain to be capable of going into
production and our assessment of the commercialisation of that project is
already well underway.  We are also optimistic about our opportunities at
Lolworth where our partnership with the GSQ adds further validity to the
potential breadth of that project.  Nearer term, the initial drilling results
at Tambo announced last week point to what could also be a very promising
ongoing campaign there."

 

Admission and Disclosure Guidance and Transparency Rules

 

Application will be made to the London Stock Exchange Plc for the 287,878,787
new Ordinary Shares to be admitted to trading on AIM ("Admission") and it is
expected that Admission will become effective on or around 9 December
2024. The 287,878,787 new Ordinary Shares will rank pari passu with the
existing Ordinary Shares.  Upon Admission, ECR's issued ordinary share
capital will comprise 2,191,885,012 Ordinary Shares. Upon Admission, this
number will represent the total voting rights in the Company, and, following
Admission may be used by shareholders as the denominator for the calculation
by which they can determine if they are required to notify their interest in,
or a change to their interest in, the Company under the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

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

 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)

 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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