ECR is a mineral exploration and development company, incorporated in the UK.

ECR’s wholly owned Australian subsidiary Mercator Gold Australia (MGA) has agreed to acquire 100% ownership of the Avoca and Bailieston gold projects in Victoria, Australia. Mercator Gold Australia is estimated to have tax losses of approximately AUD 66M as at 30 June 2015, which may be available, subject to certain conditions (as described in ECR’s announcement dated 4 December 2014), to reduce MGA’s future taxable profits.

ECR has the right to earn a 50% interest in the Danglay epithermal gold project in the Philippines. Danglay is an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015, and is available for download from ECR’s website.

ECR’s wholly owned subsidiary Ochre Mining has a 100% interest in the SLM gold project in La Rioja Province, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near term production.

 

ECR shares are listed on the AIM market of the London Stock Exchange with the symbol ECR.

Cash flow statement

 

 

 

 

For the 12 months ended 30 June 2009

 

 

 

 

 

 

2009

2008

 

 

£

£

Operating activities

 

 

 

(Loss) / profit for the period before tax

 

(3,626,770)

31,943,595

Adjustments:

 

 

 

Impairment of investment in and loans to subsidiary

 

2,205,882

30,044,000

Depreciation expense property, plant and equipment

 

38,014

3,550

Loss on disposal of property, plant and equipment

 

457

1,958

Loss of associate company for the period

 

352,976

-

Minority interest in subsidiary

 

130,049

 

Negative goodwill on consolidation

 

(187,620)

 

Interest income

 

(15,364)

(1,977,248)

Issue costs amortised – Convertible loan

 

59,984

38,835

Interest cost imputed on unwinding loan discount

 

79,600

52,834

Interest paid

 

17,067

108,078

Interest on Convertible loan notes

 

174,224

 

Share based payments

 

44,383

-

Shares issued in lieu of expense payments

 

129,894

 

Corporation tax

 

-

(60,116)

Increase in inventories

 

(255,953)

-

Decrease in provision for software expenses

 

(80,329)

-

Decrease in accounts receivable

 

(698,361)

25,993

Net (decrease) in amounts due to related parties

 

(537,222)

-

Increase/(decrease) in accounts payable

 

487,792

(2,232)

Foreign exchange

 

(9,890)

-

Net cash flow used in operations

 

(1,691,187)

(918,383)

Investing activities

 

 

 

Purchase of property plant and equipment

 

(44,882)

 

Proceeds from sale of equipment

 

 

1,285

Investment in Indonesian venture

 

(174,999)

 

Acquisition of subsidiary

 

(326,337)

 

Interest expense

 

(17,067)

 

Loans issued

 

(2,450,980)

(3,030,586)

Loans repaid

 

-

225,000

Interest received

 

15,364

22,504

Net cash used in investing activities

 

(2,998,901)

(2,781,797)

 

 

Financing activities

 

 

 

Proceeds from issue of share capital

 

4,534,717

261,750

Proceeds from issue of convertible loan notes

 

200,000

2,366,100

Repayment of finance lease creditors

 

(8,671)

 

Increase in amounts due to a director

 

224,264

 

Interest paid on convertible loan notes

 

(174,224)

(154,730)

Interest paid - other

 

(17,067)

 

Net cash from financing activities

 

4,759,019

2,473,120

Net change in cash and cash equivalents

 

85,998

(1,236,367)

Cash and cash equivalents at beginning of the period

 

24,902

1,261,269

Effect of changes in foreign exchange rates

 

16,069

 

Cash and cash equivalents at end of the period

 

126,969

24,902