THE INFORMATION CONTAINED WITHIN
THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE
INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU)
NO. 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS
AMENDED. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION
SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
ECR MINERALS
plc
("ECR Minerals" or the
"Company")
Placing to raise
£585,000
Appointment of Joint
Broker
ECR
Minerals plc (LON:ECR), the exploration and development company
focused on gold in Australia, is pleased to announce that it has
successfully raised, subject only to Admission, £585,000
before expenses through the placing of 195,000,000 new ordinary
shares ("Placing Shares")
at a price of 0.30 pence per Placing Share (the "Placing Price") (the "Placing")
The Placing Price represents a
discount of approximately 30 per cent. to the closing middle market
price of 0.43 pence per Ordinary Share on 13 March 2024, being the
latest practicable business day prior to the publication of this
Announcement.
The net proceeds from the Placing
will be used to advance ECR's projects in Victoria and Queenland
during 2024, specifically:
·
Stream sampling at Baileston, Victoria
·
Reverse Circulation drilling at Tambo, Victoria,
where the Company has previously recorded 22g/t rock chips with
Silver and Bismuth credits
·
Trenching at Flaggy Creek and Reedy Creek in
Lolworth, Queensland - trench across various outcrops followed up
with Reverse Circulation drilling
·
Reconnaissance for Niobium REE and Gold in
streams over eastern tenements in Lolworth, Queensland where
geological mapping suggests the presence of pegmatite intrusion
that covers approximately 45km2
Mike Whitlow,
Chief Operating Officer said: "This fundraising is a significant
achievement for ECR, coming at a more than 70% premium to our raise
last September. We are now fully funded for our 2024
exploration programme. With our ongoing payments for the rig
sale covering our G&A expenses, and our continued policy of
settling supplier fees through the issue of shares, where possible,
we have a strong balance sheet and believe we are well positioned
to take advantage of any future opportunities that may
arise."
Appointment of joint broker and
Issue of Equity
ECR is also pleased to announce the
appointment of Axis Capital Markets Limited ("Axis Capital") as
joint broker to the Company with immediate effect. Axis
Capital facilitated the Placing for the Company. The Company has
agreed to issue and allot 4,000,000 new ordinary shares in lieu of
£12,000 of fees due to Axis Capital as joint broker in order to
assist the Company in conserving its cash resources (the "Axis
Shares"). These shares have been issued at the placing price
of 0.30 pence.
In addition, the Company has also
elected (as it is entitled to pursuant to the terms of the
agreement) to issue and allot 8,333,333 new ordinary shares in lieu
of £25,000 of fees owed by the Company to a third party supplier,
also in order to assist the Company in conserving its cash
resources (the "Supplier Shares"). These shares have also been
issued at the placing price of 0.30 pence.
Admission and Disclosure and Transparency
Rules
Application will be made for the
Placing Shares, the Axis Shares and the Supplier Shares (a total of
207,333,333 Ordinary Shares) to be admitted to trading on AIM
("Admission") and it is expected that Admission will become
effective on or around 8 April 2024. The Placing Shares,
Axis Shares and Supplier Shares will rank pari passu with
the existing ordinary shares in the Company.
Upon Admission, ECR's issued
ordinary share capital will comprise 1,826,420,093 ordinary shares
of 0.001p. This number will represent the total voting rights in
the Company, and, following admission may be used by shareholders
as the denominator for the calculation by which they can determine
if they are required to notify their interest in, or a change to
their interest in, the Company under the Financial Conduct
Authority's Disclosure and Transparency Rules.
FOR
FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals
plc
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Tel: +44 (0) 20 7929 1010
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Nick Tulloch, Chairman
Andrew Scott, Director
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Email:
info@ecrminerals.com
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Website:
www.ecrminerals.com
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WH Ireland
Ltd
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Tel: +44 (0) 207 220 1666
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Nominated Adviser
Katy Mitchell / Andrew de Andrade
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Axis Capital
Markets Limited
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Tel: +44 (0) 203 026
0320
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Broker
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Ben Tadd/Lewis Jones
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SI Capital
Ltd
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Tel: +44 (0) 1483 413500
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Broker
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Nick Emerson
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Novum
Securities Limited
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Tel: +44 (0) 20 7399 9425
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Broker
Jon Belliss
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Brand
Communications
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Tel: +44 (0) 7976 431608
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Public & Investor
Relations
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Alan Green
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ABOUT ECR
MINERALS PLC
ECR Minerals is a mineral exploration and
development company. ECR's wholly owned Australian subsidiary
Mercator Gold Australia Pty Ltd ("MGA") has 100% ownership of the
Bailieston and Creswick gold projects in central Victoria,
Australia, has six licence applications outstanding which includes
one licence application lodged in eastern Victoria (Tambo gold
project).
ECR also owns 100% of an Australian subsidiary
LUX Exploration Pty Ltd ("LUX") which has three approved
exploration permits covering 946 km2 over a relatively unexplored
area in Lolworth Range, Queensland, Australia. The Company has also
submitted a license application at Kondaparinga which is
approximately 120km2 in area and located within
the Hodgkinson Gold Province, 80km NW of Mareeba, North
Queensland.
Following the sale of the Avoca, Moormbool and
Timor gold projects in Victoria, Australia to Fosterville South
Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the
Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), MGA
has the right to receive up to A$2 million in payments subject to
future resource estimation or production from projects sold to
Fosterville South Exploration Limited. MGA also has
approximately A$75 million of unutilised tax losses incurred during
previous operations.
ECR holds a 90% interest in the Danglay gold
project in the Philippines and a royalty on the SLM gold project in
La Rioja Province, Argentina which could potentially receive up to
US$2.7 million in aggregate across all licences.