ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
US OTC: MTGDY
London: 14 January 2013 - The board of directors of ECR Minerals plc (the “Board”) is pleased to announce that the resolution proposed at today’s general meeting of the Company was approved by shareholders.
Completion of the sale of ECR’s shareholding in Gold Crest Holdings Ltd (“Gold Crest”) to Mr Steve Iliev (the “Disposal”) is now conditional only upon receipt by the Company of the consolidated audited accounts of Gold Crest for the year ended 30 September 2012, which is expected shortly. A further announcement will be made upon completion.
The Disposal is a key element in ECR’s strategy of refocusing the efforts and resources of the Company on natural resource projects in which it can exercise control or significant influence, and of realising value from its investments.
Other recent accomplishments and key ongoing initiatives in accordance with this strategy can be summarised as follows.
- ECR is actively seeking a joint venture partner or purchaser for its 100% owned Sierra de las Minas gold project in La Rioja Province, Argentina. Pending the outcome of this process, no major exploration programmes are presently being undertaken at Sierra de las Minas.
- The sale of ECR’s shareholding in West Wits Mining Ltd was achieved in December 2012. This disposal was carried out in order to raise capital necessary to sustain ECR and its operations and to reduce the Company’s exposure to the Derewo River project in Papua Province, Indonesia.
- The possibility of a distribution to ECR shareholders of part of the Company’s holding of THEMAC shares and warrants has been considered by the Board and it has been decided not to proceed in this direction in the present circumstances.
ECR holds 14.35 million shares in THEMAC, and these shares have a value of almost CAD 5 million (equivalent to more than £3 million) based on the closing mid-market price on the TSX-V on Friday 11 December 2012, which was CAD 0.3425 per share. In addition ECR holds 14.35 million warrants of THEMAC exercisable at CAD 0.28 per share.
THEMAC is due to announce the results of a definitive feasibility study (DFS) for its 100% owned Copper Flat project in New Mexico in the coming months, and the recent commencement of gold exploration at the Andrews gold prospect nearby the Copper Flat deposit is viewed by the Board as an encouraging development.
- A significant reduction in ECR’s management costs has been achieved following the reconstitution of the Board during 2012, and the Company will seek to make further cost savings where prudent.
- The Board continues to receive proposals in respect of new mineral exploration and development opportunities as well as, recently, an opportunity to participate in oil & gas exploration and development in the USA. All proposals are carefully reviewed in the context of ECR’s current portfolio of interests including its stake in THEMAC, and the Board will only proceed to involve the Company in a new opportunity if it is judged to be in the clear interest of shareholders.
ABOUT ECR MINERALS PLC
ECR is a mineral development company with, among other interests, 100% ownership of the Sierra de las Minas gold project in La Rioja Province, Argentina; a 21% fully diluted 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; and a stake in Paniai Gold Ltd (unquoted), which has exposure to the Derewo River alluvial gold mining and exploration project in Papua, Indonesia.
FOR FURTHER INFORMATION PLEASE CONTACT:
|ECR Minerals plc|
|Keith Irons, Non-Executive Chairman||Tel:||+44 (0)20 7929 1010|
|Stephen Clayson, Director & Chief Operating Officer|
|Daniel Stewart & Company plc|
|David Hart/Antony Legge||Tel:||+44 (0)20 7776 6550|