US OTC: MTGDY
ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
LONDON: 26 MAY 2017 - Further to ECR’s announcement dated 3 March 2016 regarding the acquisition of 100% ownership of the Avoca and Bailieston gold projects located in Victoria, Australia by its wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”), the directors of the Company announce the issue of 793,832 ordinary shares of the Company (the “Further Shares”) to Currawong Resources Pty Ltd (“Currawong”), the vendor of the Avoca and Bailieston projects. The Further Shares have been issued at a price of 1.8 pence, being the mid-price on AIM at the close of trading on 18 May 2017, giving them a value of £14,288.98 or approximately AUD 25,000.
Under the Deed of Assignment and Assumption (the “Deed”) between Currawong and MGA, Currawong was to receive AUD 50,000 worth of ECR ordinary shares (the “First Tranche Shares”) within 14 days of the execution date of the Deed (28 February 2016). Due to unforeseen factors (as described in the Company’s announcement dated 23 August 2016 “Prior Announcement”), the First Tranche Shares were not issued until 23 August 2016. Since the Prior Announcement, Mr Motton, a shareholder of Currawong is no longer a director of MGA.
The First Tranche shares were issued, as provided in the Deed, based on the average mid-market closing price of ECR ordinary shares over the twenty London business days immediately preceding the execution date of the Deed. Unfortunately, the Company’s share price fell substantially between the beginning of March 2016 and the end of August 2016, and the First Tranche shares were therefore worth less than AUD 50,000 when received by Currawong, based on the Company’s share price at that time. In recognition of this, the Further Shares have been issued in full and final satisfaction of the First Tranche Shares and the second tranche of shares due to Currawong under the Deed.
Further to the Company’s announcements dated 9 November 2016 and 3 February 2017, the Directors expect to commence drilling at the Bailieston project during June 2017. Exploration Licence (EL) 5433 has now been formally transferred and registered to MGA, and the consent required under section 44(1) of the Mineral Resources (Sustainable Development) Act 1990 for the planned drilling at the Byron target in the Bailieston project area has been received in the name of MGA. No further permits are required for the proposed drilling.
Application will be made for the Further Shares to be admitted to trading on AIM (“Admission”). Admission is expected to occur on or around 2 June 2017. Following Admission, it is expected that ECR’s issued ordinary share capital will consist of 136,693,293 Ordinary Shares. The Further Shares will rank pari passu in all respects with the Ordinary Shares of the Company currently traded on AIM.
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia has 100% ownership of the Avoca, Bailieston and Timor gold projects in Victoria, Australia. ECR has earned a 25% interest in the Danglay epithermal gold project, 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, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near term production.
Market Abuse Regulations (EU) No. 596/2014
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
|ECR Minerals plc||Tel: +44 (0)20 7929 1010|
|William (Bill) Howell, Non-Executive Chairman|
|Craig Brown, Director & CEO |
Ivor Jones, Director & COO
|Cairn Financial Advisers LLP||Tel: +44 (0)20 7213 0880|
|Emma Earl / Jo Turner|
|Optiva Securities Ltd||Tel: +44 (0)203 137 1902|
|FlowComms||Tel: +44 (0)7891 677 441|
|Blytheweigh||Tel: +44 (0)20 7138 3204|
|Tim Blythe / Camilla Horsfall / Nick Elwes|
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such statements may be subject to numerous known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations. There can be no assurance that such statements will prove to be accurate and therefore actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. Any forward-looking statements contained herein speak only as of the date hereof (unless stated otherwise) and, except as may be required by applicable laws or regulations (including the AIM Rules for Companies), the Company disclaims any obligation to update or modify such forward-looking statements because of new information, future events or for any other reason.