ECR Minerals has identified a proposed offtake partner for gold production from its Raglan alluvial gold project in Queensland and expects to finalise formal documentation later this month, providing a clear and secured route to market.
Separately, the company said an internal valuation carried out for insurance purposes assessed the replacement value of Raglan’s plant, equipment and site infrastructure at approximately A$1.9 million. That figure is well above the project’s original acquisition cost, which ECR said underlines the quality and strategic value of the asset.
With an experienced operational team in place, a defined offtake pathway and a substantial granted mining lease, ECR said it is confident Raglan is progressing steadily toward mining and production, with the objective of delivering early cashflow.
ECR Chairman, Nick Tulloch, commented: “Identifying the Proposed Offtake Partner and visiting their facility is an important step as the Raglan Project’s production plan is being implemented. Detailed discussions and proposed terms have been discussed, and we expect to finalise the formal documentation this month. This provides confidence that there is a clear and established route to market for the Raglan Project’s gold.
“The insurance valuation of the inventory, plant and equipment has been equally encouraging. Having visited the site, I have seen first-hand the high quality of the operations and equipment. The fact that the replacement value is close to double what we paid reinforces the value embedded in the acquisition.
“Together, these developments further de-risk the Raglan Project at exactly the right time. Despite recent volatility, gold prices remain at historically strong levels and with all infrastructure in place and commercial arrangements moving to being finalised, we believe that the Raglan Project is well positioned to deliver early cashflow and support the continued build-out of ECR’s Queensland portfolio.”
