REG - ECR Minerals PLC - Termination of discussions with Maximum Minerals

ECR MineralsAnnouncement

13/05/2025 07:02

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RNS Number : 3440I  ECR Minerals PLC  13 May 2025

This announcement contains inside information for the purposes of Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.

 

 

 

13 May 2025

 

ECR MINERALS PLC

 

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

 

Termination of discussions with Maximum Minerals Ltd

 

ECR Minerals plc (LON: ECR), the exploration and development company focused
on gold in Australia, announces that it has terminated discussions in respect
of the proposed acquisition of Maximus Minerals Ltd ("Maximus"), details of
which were originally announced by the Company on 3 March 2025. Maximus is the
owner of three properties in Ontario, Canada and has an option to acquire a
license over a fourth property also in Ontario.

 

During the due diligence phase of the proposed acquisition, it became apparent
to ECR that there are certain unforeseen structural challenges regarding
Maximus that will increase the complications of successfully concluding any
such transaction and thereby detract from its potential value to ECR. As a
result, the board of directors of ECR has determined that it is not in
shareholders' best interests to continue discussions with Maximus.

 

All of the due diligence in relation to Maximus to date was conducted
personally by ECR's management team. Consequently, no professional fees or
legal expenses have been incurred by ECR.

 

Nick Tulloch, Chairman of ECR, said: "Naturally it is disappointing when a
proposed transaction does not proceed. However, we will not compromise our
guiding principles of only pursuing projects that are the best strategic fit
for ECR and have a high probability of delivering value to our shareholders
and preserving our cash resources for ongoing development of our projects.

 

"We wish the Maximus team well in their future plans and we will continue to
be receptive to opportunities that may advance ECR's strategic objectives.
During the course of this year, we have already received and examined several
other prospects.  In some cases, our investigations remain ongoing, and we
will make further announcements if we determine that any of these should be
advanced further."

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

 ECR Minerals Plc                                                                                                                                                                                                                                   Tel: +44 (0) 02 8080 8176
 Nick Tulloch, Chairman                                                                                                                                                                                                                             info@ecrminerals.com (mailto:info@ecrminerals.com)

 Andrew Scott, Director

 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) 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
 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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