In this exclusive StockBox interview, Mike Whitlow, Managing Director of ECR Minerals, discusses the company’s strategic decision to withdraw from the Maximus Minerals transaction following a thorough due diligence process.
Mike outlines why the deal no longer aligned with shareholder value expectations and how the board made a clear, confident call to move on.
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, announces that it has terminated discussions in respect of the proposed acquisition of Maximus Minerals Ltd (“Maximus”), details of which were originally announced by the Company on 3 March 2025. Maximus is the owner of three properties in Ontario, Canada and has an option to acquire a license over a fourth property also in Ontario.
During the due diligence phase of the proposed acquisition, it became apparent to ECR that there are certain unforeseen structural challenges regarding Maximus that will increase the complications of successfully concluding any such transaction and thereby detract from its potential value to ECR. As a result, the board of directors of ECR has determined that it is not in shareholders’ best interests to continue discussions with Maximus.
All of the due diligence in relation to Maximus to date was conducted personally by ECR’s management team. Consequently, no professional fees or legal expenses have been incurred by ECR.
Nick Tulloch, Chairman of ECR, said: “Naturally it is disappointing when a proposed transaction does not proceed. However, we will not compromise our guiding principles of only pursuing projects that are the best strategic fit for ECR and have a high probability of delivering value to our shareholders and preserving our cash resources for ongoing development of our projects.
“We wish the Maximus team well in their future plans and we will continue to be receptive to opportunities that may advance ECR’s strategic objectives. During the course of this year, we have already received and examined several other prospects. In some cases, our investigations remain ongoing, and we will make further announcements if we determine that any of these should be advanced further.”
