ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
US OTC: MTGDY
LONDON: 4 DECEMBER 2014 - ECR Minerals plc is pleased to announce that its 100% owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has been released from external administration. As previously announced, MGA is estimated to possess tax losses of approximately A$80 million.
Stephen Clayson, Chief Executive Officer of ECR, commented:
“We are delighted that after a long wait, MGA has been released from administration. Our intention now is to realise value from ECR’s 100% shareholding by identifying a suitable purchaser for our shares in MGA and concluding a sale at the earliest opportunity.”
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.
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 in the north of the Philippines.
ECR has a 100% interest in the SLM gold project in La Rioja Province, 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 continues to review potential new investments on a highly selective basis, with a concentration on precious, base and strategic metals projects in Asia and South America.
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|
|Richard (Dick) Watts, Technical Director|
|Daniel Stewart & Company plc||Tel:||+44 (0)20 7776 6550|
Emma Earl/David Coffman (Nominated Adviser)
|Colin Rowbury (Broker)|