REG-ECR Minerals plc Update on Mercator Gold Australia <Origin Href="QuoteRef">ECRE.L</Origin>

ECR MineralsAnnouncement

24/11/2014 13:52

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LONDON--(Business Wire)--


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

AIM: ECR
US OTC: MTGDY 

UPDATE ON MERCATOR GOLD AUSTRALIA

LONDON: 27 AUGUST 2014 - ECR Minerals plc is pleased to announce, further to its
announcements of 4 July 2014 and 15 July 2014, that the Company has been
informed by the external administrators (the "Administrators") of its 100% owned
Australian subsidiary Mercator Gold Australia Pty Ltd ("MGA") that the
Administrators expect to despatch cheques in respect of a second and final
dividend to unsecured creditors of MGA (excluding ECR) during early September
2014. 

The Administrators advise that after completing their statutory duties, which
include awaiting the presentation of all dividend cheques to MGA`s bank account,
the Administrators expect to release MGA from administration. The Claim, as that
term is defined in ECR`s announcement of 4 July 2014, has now been assigned to
Main Roads Western Australia. 

Following MGA`s release from administration it is expected by the Company that
MGA will possess tax losses estimated to total approximately A$80 million, as
previously announced. These tax losses will be of significant benefit to MGA
should it be successful in establishing profitable business activities following
its release from administration. 

The availability of MGA`s tax losses is subject, inter alia, to MGA`s compliance
with the "continuity of ownership test", as that term is used in the context of
Australian taxation, at all relevant times. Compliance with this test is
determined by reference to ECR`s register of shareholders and the variations
thereto that occur over time. The figure of approximately A$80 million is the
latest available estimate of MGA`s accumulated tax losses and is stated as at 30
June 2013. Analysis to confirm MGA`s tax loss position as at 30 June 2014 is in
progress (30 June being MGA`s financial year-end). The Company considers that at
the present time, MGA is in compliance with the continuity of ownership test. 

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 on the island of Luzon in the north of the Philippines. 

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

ECR holds a substantial minority stake in THEMAC Resources Group Ltd (TSX-V:
MAC), which is focused on the development of the Copper Flat
copper-molybdenum-gold-silver porphyry project in New Mexico, USA. 

FOR FURTHER INFORMATION PLEASE CONTACT: 
 
 ECR Minerals plc                          Tel: +44 (0)20 7929 1010  
 Paul Johnson, Non-Executive Chairman                                
 Stephen Clayson, Director & Chief Executive Officer                 
                                                                     
 Email: info@ecrminerals.com                                         
 Website: www.ecrminerals.com                                        
                                                                     
 Daniel Stewart & Company plc              Tel: +44 (0)20 7776 6550  
 Emma Earl/Harrison Clarke (Nominated Adviser)                       
 Colin Rowbury (Broker)                                              
 
 
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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