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Highlights
- ECR raises £950,000 via subscription at 0.33 pence per share, a 20.5% discount to the prior market price.
- Funds will support key projects in Victoria and Queensland, including Blue Mountain and Lolworth.
- Plans include gold production readiness by mid-2025 and critical mineral exploration.
ECR Minerals plc (LSE:ECR), an exploration and development company focused on gold in Australia, has announced it has raised £950,000 (before expenses) through a subscription of 287,878,787 new ordinary shares at 0.33 pence per share. The Subscription Price represents a 20.5% discount to the closing middle market price of 0.415 pence per share on November 22, 2024.
Use of Funds
The net proceeds will be directed toward advancing ECR’s exploration and development projects across Australia, particularly in Victoria and Queensland. The funds will enable the following key initiatives in 2025:
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Tax Loss Sale:
- Progress the sale of tax losses held by its subsidiary, Mercator Gold Australia Pty Ltd (MGA), with negotiations currently underway with a prospective buyer.
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Blue Mountain Project:
- Complete a commercialisation assessment in Q1 2025, building on a recent independent report by Gekko Systems Pty Limited, which confirmed a gold recovery rate of 91.7%.
- Prepare Blue Mountain for production and revenue generation by mid-2025.
-
Lolworth Field Campaign:
- Restart field exploration in Q2 2025 in partnership with the Geological Survey of Queensland, focusing on critical minerals potential.
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Tambo Drilling Campaign:
- Analyze forthcoming results from the diamond drilling campaign to guide a follow-up and potentially expanded program.
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Bailieston Antimony Potential:
- Conduct further investigations into the antimony resource, following promising reanalysis of historical core samples showing 32% antimony content.
Funding and Strategic Direction
The new shares will be issued under the directors' existing share allotment authority, approved at the company’s annual general meeting in April 2024. Following this funding, ECR confirms it is financially prepared to execute its planned activities for 2025.
