ECR Minerals plc (LON: ECR), the gold exploration and development company focused on Australia, is pleased to announce that its shareholding in Cordillera Tiger Gold Resources, Inc (“Cordillera”), owner of Exploration License EP-006 at the Danglay gold project in the north of the Philippines, has increased from 70% to 90%.
This increase was due to the conversation of an intercompany loan of 28,354,525 pesos (approx. £420800) which was owed by Cordillera to ECR. The loan was in relation to certain fees and explorations expenses and was satisfied by the issue of 6,666,667 new ordinary shares in the Company.
Following this issue ECR holds 8,999,996 Ordinary Shares in Cordillera representing 90% of its issued share capital.
ECR CEO Andrew Haythorpe added: “Although I have yet to visit the Philippines and view the Danglay Gold project first hand, I am very much aware of the opportunity and nascent value it represents for the ECR asset portfolio.”
“In my strategic update last July, I stated that all options to monetize and develop non-core assets would be considered. This issue of equity brings our holding in Cordillera Tiger to 90%, and as a result, the Board now expects to be able to take full advantage of opportunities that may arise in regard to the development of the Danglay Gold project. I look forward to reporting back on further progress.”
Danglay Project Background
In July 2021, Cordillera Tiger successfully renewed Exploration License EP-006 at the Danglay gold project for a further two years. This licence is located in an established gold and copper mining district in the north of the Philippines. ECR initially held a 25% interest in the Danglay gold project through Philippines corporation Cordillera Tiger Gold Resources, Inc. under an Exploration Permit. The issuance of the 25% shareholding in Cordillera Tiger to the Company had been delayed since 2016, largely due to a court case filed by an individual who is a minority shareholder and former director of Cordillera Tiger. This matter was successfully resolved (see announcement dated July 30th 2021).
On April 27th 2022, Cordillera Chairman & Vice President Ludevico Estacio agreed to sell his shares (1,499,996 in total) to ECR Minerals for a consideration of 1,499,996.00 Philippine pesos (approx £22,000), which ECR paid for in cash (see announcement dated April 27th 2022 here). Following the acquisition, ECR held 2,333,329 Ordinary Shares in Cordillera representing 70% of its issued share capital.
The share issue announced today brings ECR’s shareholding in Cordillera Tiger to 8,999,996 Ordinary Shares (90%).. The Board believes that the political climate for the minerals industry in the Philippines continues to improve and considers that the Danglay gold project has potential for further exploration to build upon the existing inferred mineral resource estimate of 63,500 ounces of gold at 1.55 g/t gold. This resource was reported by ECR in 2015 to the Canadian NI43-101 standard (see announcement dated 15 December 2015), based on exploration carried out at Danglay by ECR during 2014 and 2015. In addition to the resource, an NI43-101 target for further exploration (conceptual potential quantity and grade of mineralisation expressed as ranges) of 95,000 to 170,000 ounces of gold at 5 to 7.5 g/t was reported.
The Directors recognise that this resource statement is not prepared to a standard currently recognised by AIM and accordingly this information is provided for guidance purposes only and is subject to further work, verification and updating. In addition, targets for further exploration are not mineral resource estimates, are conceptual in nature, are used where there has been insufficient exploration to deﬁne the target as a mineral resource, and where it is uncertain if further exploration will result in the target being delineated as a mineral resource.
In the year to December 2021, Cordillera Tiger Gold Resources Inc recorded no revenues or profits, and a deferred mine exploration cost of 27,800,747 Philippine pesos (approx £406,000) (audited).
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc
Tel: +44 (0) 20 7929 1010
David Tang, Non-Executive Chairman
Andrew Haythorpe, CEO
Email: [email protected]
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