Mark Fairbairn from StockBox Media spoke with Nick Tulloch, Chairman of ECR Minerals plc.
ECR Minerals plc (AIM: ECR) provides an update on its ongoing strategy, including developments regarding the potential sale of its subsidiary, Mercator Gold Australia Pty Ltd, and plans to capitalise on the increasing global demand for antimony at Bailieston.
➡️Rising gold and antimony prices have increased Baillieston’s strategic value, prompting a reconsideration of ECR’s tax loss strategy.
➡️Multiple parties are now interested in MGA, offering new potential deals beyond Octo.
➡️ECR is weighing three options: selling MGA, developing Baillieston, or using tax losses internally via Blue Mountain production.
ECR Chairman, Nick Tulloch, commented: “As shareholders are aware, we have dedicated substantial effort to unlocking value from our A$75 million of tax losses. Whilst we appreciate that some investors may be eager for a quick sale, it is essential that we prioritise the best long-term outcome for ECR’s shareholders. These losses were accumulated over two decades, and ensuring that we extract maximum value is our priority. The delays in the proposed Octo transaction, while disappointing, have provided us with an opportunity to reassess our strategic position. Given the level of demand for antimony and the strength of the grades that we have identified at Bailieston, it is clear that this asset may be more valuable than previously considered.
“Additionally, with our Blue Mountain Project advancing, we see a significant alternative opportunity to use MGA’s tax losses internally, potentially saving the Company millions in taxes if we bring this high-potential gold project into production.
“Our Company has several potentially high value projects and, through our sale efforts, a number of potentially interested parties wish to investigate the purchase of MGA. We are consequently in a far stronger place now than when we began the investigations into a sale of MGA and we will put our learning on the sale of tax losses and the developments within our own projects to good effect. Our plans to sell MGA and monetise the tax losses are still very much on our agenda, but offers will now be assessed against a competing use within our own operations.”
