Last checked at 30 Aug 2013 07:00
ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
AIM: ECRUS OTC: MTGDY
UPDATE RE ITOGON GOLD-SILVER PROJECT
MERCATOR GOLD AUSTRALIA AND
REVIEW OF POTENTIAL NEW PROJECTS
LONDON: 30 AUGUST 2013
ITOGON GOLD-SILVER PROJECT
ECR Minerals plc notes the comments made by Tiger International Resources Inc. (“Tiger”) in the Management Discussion & Analysis section of Tiger’s annual financial statements published 28 August 2013, with reference to the Itogon gold-silver project in the Philippines held by Tiger’s subsidiary Cordillera Tiger Gold Resources Inc. (“Cordillera Tiger”).
As previously announced, the Company has entered into an earn-in and joint venture agreement (the “Agreement”) with Tiger and Cordillera Tiger in relation to the Itogon project. The only remaining condition for the commencement of the earn-in is the receipt by Cordillera Tiger of absolute confirmation that the exploration permit pertaining to the Itogon project has been extended for a further two years (the “Extension”). ECR does not consider that absolute confirmation of the Extension has yet been received by Cordillera Tiger, but the Company expects that this will occur in the near future.
The Agreement gives ECR the exclusive right and option to earn a 50% interest in Cordillera Tiger and thereby in the Itogon project by obtaining, for Cordillera Tiger, a mining licence in respect of the project within 5 years of the commencement of the earn-in and by making certain staged payments to Tiger. ECR will fund all expenditure required for Cordillera Tiger to obtain a mining licence, and through Cordillera Tiger, will be the operator of the project during the earn-in; after a mining licence is obtained ECR and Tiger would fund development of the Itogon project pro rata, or the non-funding partner would be diluted.
MERCATOR GOLD AUSTRALIA
Further to ECR’s announcement of 8 August 2013, the Company has been informed by the external administrators (the “Administrators”) of its 100% owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) that there has been a delay in the preparation of the report to creditors being prepared by the Administrators and that the report will not now be available during August. The Company has not been given firm guidance as to when the report will be available, but it is hoped that this may be during September. Any significant delay to the availability of the report may delay the release of MGA from administration.
REVIEW OF POTENTIAL NEW PROJECTS
ECR continues to review additional gold project opportunities, including some producing gold mines, in the Philippines and elsewhere in the Asia Pacific region. A small number of these opportunities are being investigated on an in-depth basis, including site visits.
The Company is being highly selective and is appraising potential new projects on the basis of certain criteria including the following:
realistic financial commitments; security of tenure; strong potential for ECR to add value technically; no impediment to effective management of the project by a local team and the team in the UK; and overall potential that is easy to articulate to investors.ABOUT ECR MINERALS PLC
ECR is a mineral development company with, among other interests, the right to earn a 50% interest in the Itogon gold-silver project in the Philippines. The Itogon project is an advanced exploration project located in a gold and copper mining district on the island of Luzon in the north of the Philippines, and benefits from an extensive historical dataset.
The Company also has 100% ownership of the Sierra de las Minas gold project in La Rioja Province, Argentina; and a substantial minority stake in THEMAC Resources Group Ltd (TSX-V: MAC), which is focused on the development of the Copper Flat copper-molybdenum-gold-silver porphyry project in New Mexico, USA.
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
Email: info@ecrminerals.com
Website: www.ecrminerals.com
Daniel Stewart & Company plc Tel: +44 (0)20 7776 6550
David Hart/Antony Legge
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such statements may be subject to a number of 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 as a result of new information, future events or for any other reason.
Copyright Business Wire 2013