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.


SILVER SWAN GROUP LIMITED – A Rapidly Maturing Investment

At the beginning of the period, Mercator held 10 million shares and 4 million performance shares in Silver Swan Group Limited, an exploration company listed on the Australian Stock Exchange and focused on gold and base metal projects in Australia, the most significant of which were sold to it by Mercator in April 2008.

During September 2009 the Company received an approach from a group of Silver Swan shareholders and as a result decided to sell approximately nine million of its shares for cash proceeds of approximately A$3 million. This sale, which realised book profits of more than A$1 million, allowed the Company to lock in a considerable profit on its investment whilst still leaving it with a substantial stake in any further success of Silver Swan.

Silver Swan as an Example of Mercator’s Ability to Add Value

Silver Swan represents an excellent example of the process by which Mercator is able to add value to a project and then realise this value at an opportune time. The Company staked the original claim over the Austin prospect near Meekatharra in Western Australia, where Silver Swan has made a significant Cu-Zn-Au-Ag discovery of the volcanogenic massive sulphide type. Mercator was instrumental in the appointment of key management to Silver Swan when the Company sold the package of claims that included the Austin prospect to Silver Swan in April 2008.

Mercator’s initiative has already delivered a cash return following the sale of approximately nine million of its shares in Silver Swan, and the Company retains exposure to the continued success of Silver Swan through its remaining ordinary shares and its 4 million performance shares.