ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
US OTC: MTGDY
LONDON: 15 JULY 2014 - ECR Minerals plc is pleased to announce, further to its announcement of 4 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 at the meeting of creditors of MGA held today, it was resolved, inter alia, to vary in certain respects the deed of company administration (the “DOCA”) to which MGA is currently subject.
This variation of the DOCA is expected to permit, in due course, the release of MGA from administration. When this occurs 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.
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|
|Paul Johnson, Non-Executive Chairman||Tel:||+44 (0)20 7929 1010|
|Stephen Clayson, Director & Chief Executive Officer|
|Daniel Stewart & Company plc||Tel:||+44 (0)20 7776 6550|
|David Hart/Harrison Clarke (Nominated Adviser)|
|Colin Rowbury (Broker)|