Sale of SLM Gold Project
(“ECR Minerals”, “ECR” or the “Company”)
SALE OF SLM GOLD PROJECT
(LON: ECR), the precious metals exploration and development company, is pleased to announce the sale of its wholly owned Argentine subsidiary (“Ochre”), which holds the SLM gold project in , .
, Chief Executive Officer, commented:
“We are pleased to retain exposure to potential upside from the SLM gold project in the form of a royalty on future production, and we believe that Hanaq has the operational capabilities and access to Chinese investment capital necessary to put the SLM project into production, subject to the usual prerequisites.
Moreover, the transaction enables ECR to concentrate its resources on our core gold exploration activities in Australia.”
Ochre’s sole asset is the SLM gold project, which comprises seven mining licences in , . Hanaq has purchased 100% ownership of Ochre from ECR. The consideration for the acquisition is the grant to ECR of a 2% net smelter return (NSR) royalty in respect of four of the licences, and a 1% NSR royalty in respect of the other three licences. The NSR is capped at in aggregate (across all licences). This is the equivalent of approximately £2.07 million, based on /USD exchange rate (Bloomberg closing rate 04/02/2020).
The directors of the Company understand that the founder and CEO of , of which is part, is Mr , who has a substantive track record in , including responsibility for the successful permitting of the Pampa de Pongo iron ore project in in his former capacity as General Manager of . is one of the largest iron ore deposits in . has degrees from in , and , and in the .
More information regarding the Hanaq group can be found at the following link:
Commencement of production at the SLM project under Hanaq’s ownership is not a certainty, and is subject, inter alia, to further exploration and feasibility studies being successfully completed (if deemed necessary by Hanaq) and to the necessary permits for production being obtained. Upon the receipt of any future royalties, the Company intends to apply the funds to its exploration and development activities.
The book value of Ochre and the SLM project in ECR’s unaudited half-yearly results for the six months ended was £1,072,210. In its audited financial statements for the year ended , Ochre reported no turnover and no profits, and net assets of approximately £170,000 (equivalent). Ochre has one employee.
MARKET ABUSE REGULATIONS (EU) No. 596/2014
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via (RIS), this inside information is now considered to be in the public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration projects in central and the Windidda project in the Yilgarn region, .
ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of . An NI43-101 technical report was completed in respect of the Danglay project in and is available for download from ECR’s website.
- ECR retains an NSR royalty of up to 2% to a maximum of in respect of future production from the SLM gold project;
USD 2.7 million
- The purchaser, (“Hanaq”), is a Chinese-owned company engaged in lithium, base and precious metals exploration in including Salta, Jujuy and , with a highly experienced management team;
Hanaq Argentina SA Northwest Argentina La Rioja
- The sale allows ECR to focus on its core gold exploration activities in .
Tel: +44 (0)20 7929 1010
, Non-Executive Chairman
, Director & CEO
Tel: +44 (0)161 832 2174
Tel: +44 (0)1483 413500
Quick facts: ECR Minerals PLC
Market Cap: £2.1 m
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