viewECR Minerals PLC

Sale of Exploration Licences for Cash



(“ECR Minerals”, “ECR” or the “Company”)


(LON: ECR), the gold exploration and development company focussed on , is pleased to announce the sale by ECR’s wholly owned Australian subsidiary (“MGA”) of the licences comprising the Avoca, Moormbool and Timor gold exploration projects (the “Licences”) in to Fosterville South Exploration Ltd (“Fosterville South”) for total potential cash consideration of up to .ECR Minerals plcMercator Gold Australia Pty LtdAustraliaVictoria, AustraliaA$2.5 million

Fosterville South, which recently listed on the with the code FSX, has agreed to acquire MGA’s 100% ownership of the Licences by way of , a wholly owned subsidiary of Fosterville South, for the following consideration:TSX Venture ExchangeCurrawong Resources Pty Ltd

1. in cash to be paid to MGA immediately;A$500,000

2. A further payment of for every ounce of gold or gold equivalent of measured resource, indicated resource or inferred resource estimated within the area of one or more of the Licences in any combination or aggregation of the foregoing, up to a maximum of in aggregate;A$1A$1,000,000

3. A further payment of for every ounce of gold or gold equivalent produced from within the area of one or more of the Licences, up to a maximum of in aggregate.A$1A$1,000,000

, Chief Executive Officer of ECR, commented:Craig Brown“We are delighted to sell these non-core but high-potential licences to Fosterville South, while maintaining exposure to upside from the Licences as a result of future resource estimation or production.

We believe Fosterville South is well placed to advance the Licences with its strong local exploration team and backing from North American high-net worth and institutional investors, while ECR will continue to concentrate its resources on our core projects in , Bailieston and Creswick.Victoria

The initial cash to be received from this disposal, in addition to the recently announced placing for £500,000, puts ECR in a robust working capital position which we can apply toward development of our core projects.

It is worth noting that other external parties are currently reviewing data on our Bailieston and Creswick gold projects with a view to potential commercial transactions, including joint venture opportunities, although there can be no guarantee that any transaction will occur. In addition, whilst ECR remains open to transactions on these licence areas, the ECR board believe both to hold considerable potential and inherent value for the Company.”

Further Information

The Licences comprise exploration licences EL5387 (Avoca project), EL006280 and EL006913 (Moormbool project), and EL006278 (Timor project) in .Victoria, Australia

The book value of the Licences as derived from ECR’s unaudited management accounts for the period ended was approximately , which is the equivalent of approximately £144,000, based on £1 = *. No turnover, profits or losses are attributable to the Licences.30 March 2020A$282,000A$1.9626

The maximum potential cash consideration receivable by MGA in respect of the sale of the Licences is , which is the equivalent of approximately £1.275 million, based on £1 = *A$2.5 millionA$1.9626

The Company intends that the consideration to be received immediately, and any future consideration received, will be applied by ECR to augment its ongoing working capital position as well as towards its exploration and development activities.


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.Regulatory Information Service

*Exchange rate derived from closing price on Bloomberg at .17 April 2020



ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary has 100% ownership of the Bailieston and Creswick gold projects in central and the Windidda project in the Yilgarn region, .Mercator Gold Australia Pty LtdVictoria, AustraliaWestern Australia

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.the PhilippinesDecember 2015

ECR Minerals plc

Source:ECR Minerals plc

ECR Minerals plc


Tel: +44 (0)20 7929 1010

, Non-Executive ChairmanDavid Tang

, Director & CEOCraig Brown


[email protected]



WH Ireland Ltd

Tel: +44 (0)161 832 2174

Nominated Adviser

/Katy MitchellJames Sinclair-Ford


SI Capital Ltd


Tel: +44 (0)1483 413500






Nick Emerson



Quick facts: ECR Minerals PLC

Price: 1.675

Market: AIM
Market Cap: £9.25 m

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