ECR Minerals cancels purchase of Maximus Minerals during due diligence

(Alliance News) - ECR Minerals PLC on Tuesday said it has terminated discussions to buy Maximus Minerals Ltd due to "unforeseen structural challenges" at Maximus.

The gold-focused exploration and development company said the challenges were found during the due diligence phase of the acquisition.

In March, ECR said it would buy Maximus for GBP500,000.

It said the challenges would "increase the complications of successfully concluding" the transaction and detract from its potential value to ECR.

Maximus is the owner of three properties in Ontario, Canada with copper, zinc and gold showings and has an option to acquire a license over a fourth property in Ontario.

ECR said the board has determined that it is not in shareholders' best interests to continue discussions.

The company said it has not incurred any professional fees or legal expenses as all the due diligence was conducted by ECR's management team.

"Naturally it is disappointing when a proposed transaction does not proceed. However, we will not compromise our guiding principles of only pursuing projects that are the best strategic fit for ECR and have a high probability of delivering value to our shareholders and preserving our cash resources for ongoing development of our projects," said Chair Nick Tulloch.

"We wish the Maximus team well in their future plans and we will continue to be receptive to opportunities that may advance ECR's strategic objectives. During the course of this year, we have already received and examined several other prospects. In some cases, our investigations remain ongoing, and we will make further announcements if we determine that any of these should be advanced further."

Shares in ECR Minerals were closed flat at 0.24 pence in London on Tuesday.

By Michael Hennessey, Alliance News reporter

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