REG-ECR Minerals plc UPDATE ON MERCATOR GOLD AUSTRALIA <Origin Href="QuoteRef">ECRE.L</Origin>

ECR MineralsAnnouncement

24/11/2014 14:35

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20141014:nBw135894a 
 
LONDON--(Business Wire)--


ECR MINERALS plc

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

AIM: ECR 

US OTC: MTGDY 

UPDATE ON MERCATOR GOLD AUSTRALIA

LONDON: 14 OCTOBER 2014 - ECR Minerals plc is pleased to provide the following
update regarding its 100% owned Australian subsidiary Mercator Gold Australia
Pty Ltd ("MGA"). 

Further to the Company`s announcement of 15 September 2014, the external
administrators of MGA (the "Administrators") have informed the Company that a
number of dividend cheques remain unpresented, and that the Administrators
intend to contact the relevant parties this week and request that the cheques
are presented without delay. The Administrators have previously advised 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. 

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. 

In the expectation that MGA will be released from administration in the
relatively near future, ECR is investigating the feasibility of a sale of the
Company`s shares in MGA. At this stage there can be no assurance that applicable
regulations will permit such a sale without affecting the validity of the tax
losses (which would be the motivation for a purchaser to enter into the
transaction) or that a suitable third party will be identified. Any material
progress in this area will be announced. 

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 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 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 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 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/David Coffman (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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