25 Mar 2020 15:13
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining
25 March 2020
Erris Resources plc
("Erris Resources" or the "Company")
Erris Resources Activities and Covid-19 Update
Erris Resources, the European focused mineral exploration company with a portfolio of projects provides an update on its activities following the outbreak of Covid-19.
Scotland
Prospecting and mapping on the Company's Loch Tay Gold Project in Scotland which was underway has ceased in line with recent restrictions introduced by the UK government to combat the outbreak of Covid-19. The Company's priority is the health and well-being of its staff, stakeholders and its local communities and it has taken all appropriate measures to protect them in accordance with the relevant governmental and regional requirements. A batch of 121 rock samples collected over the past two months was transported to Ireland by a Company geologist and was submitted to ALS laboratories on 25th March. However, there is no guarantee that the sample results will be returned in a timely manner should further restrictions be introduced in Ireland. The Company will provide a further update on the Loch Tay project once sample results are received and newly collected data is reviewed.
Scandinavia
There is no immediate impact on the planned work in Norway or Sweden as the field season does not commence until June when snow has melted. Should the outbreak last into the summer months, then early stage fieldwork may be delayed. The Company has decided not to retain the reservation permits in Finland nor convert them to exploration permits and has taken actions to close down the Finnish subsidiary and surrender the reservation permits. The work in Finland was fully funded by Centerra Gold as part of the strategic alliance which was terminated on 1 December 2019.
Ireland
The Company has not planned any work on its Abbeytown Zn-Pb-Ag-Cu project in Ireland in the coming field season and therefore there is no immediate impact caused by the Covid-19 outbreak. The prospecting licences were renewed for a further six years in 2019 and are in good standing until August 2021 with further work targeted for early 2021.
Outlook
At the end of February 2020, the Company held approximately €1.3 million in cash and maintains a disciplined approach to expenditure on its 100%-owned projects. The Board and Management continue to review projects in low risk jurisdictions internationally that fit its investment criteria in order to identify new valuable assets for the Company. Any travel to review such opportunities as part of the due diligence process is curtailed until travel restrictions are lifted. In the interim, the Company will seek to reduce costs until such time as activities can be recommenced in full. In addition, the Company will continue to seek consulting opportunities and partners for other projects in its portfolio however this may be more difficult during the Covid-19 outbreak.
Erris Resources wishes all its shareholders and stakeholders the best of health during the current outbreak. We look forward to restarting fieldwork as soon it is safe to do so.
*ENDS*
For further information visit www.errisresources.com or contact:
David Hall/Aiden Lavelle | Erris Resources plc | +353 (0) 94 902 8481 |
David Hart/Liz Kirchner | Allenby Capital (Nominated Adviser) | +44 (0) 20 3328 5656 |
Erik Woolgar | Shard Capital (Joint Broker) | +44 (0) 20 7186 9952 |
Zoe Alexander/Andy Thacker | Turner Pope Investments (TPI) Ltd (Joint Broker) | +44 (0) 20 3657 0050 |
Isabel de Salis/Beth Melluish | St Brides Partners (Financial PR) | +44 (0) 20 7236 1177 |
Notes
Erris Resources plc (EPIC: ERIS.L) is an AIM quoted, European focused, discovery driven consulting and exploration company, supported by the Canadian mining major, Osisko Gold Royalties, which has a 18.9% interest in the Company. The Company has a portfolio of gold projects in Scotland, Sweden and Norway and zinc and base metals assets in Ireland, which it is looking to further build on. Led by a highly qualified team with extensive corporate and sector experience, Erris's strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions.