ECR Minerals (LON:ECR) updated further on the process of releasing from administration of Australian subsidiary Mercator Gold (MGA).
The administrators expect to send out cheques for a second and final dividend to unsecured creditors of the subsidiary, excluding ECR, early next month, the firm revealed.
After that, the administrators expect to release the firm from administration. This is significant for ECR as it would entitle it to tax credits in future years.
"Following MGA’s release from administration it is expected by the company that MGA will possess tax losses estimated to total approximately A$80 million, as previously announced.
"These tax losses will be of significant benefit to MGA should it be successful in establishing profitable business activities following its release from administration."
Analysis to confirm MGA’s tax loss position as at 30 June 30 this year is ongoing, the firm added.