ECR Minerals plc (LON:ECR), the exploration and development company focused on gold in Australia, is pleased to confirm that its subsidiary, Mercator Gold Australia Pty Limited (“Mercator”), has agreed to effect the sale of two under-utilised non-core assets.
Drilling Rig
Mercator has signed an agreement to dispose of its Coretech Drilling Rig with a mining operations company under a hire purchase arrangement. The total consideration is A$350,000 of which Mercator will receive A$53,000 on the start date of the arrangement, being 1 January 2024, with a further A$33,000 due every month thereafter for nine months until title in the asset transfers. The full payment obligations under the agreement are guaranteed by a related company to the purchaser.
Excavator
At the same time, Mercator has successfully sold an excavator at auction for a price of A$70,000. These funds have been received by Mercator.
Additional Disposals
The remaining non-core asset that ECR plans to sell is 20 acres of land in Victoria. The Board has determined to apply for in principle planning permission for a residential house to be built on the land. If such planning permission is granted then the Board expects the appeal of the land to increase to prospective buyers. The cost of planning permission is modest with timing likely to be in the first half of 2024. Further updates will be provided as appropriate.
The monies raised from these sales will be utilised to progress work on the Company’s portfolio.
ECR Managing Director Nick Tulloch commented: “We have had a stated plan to realise value from assets within ECR that we are not using or do not require. Finalising these two agreements before the end of 2023 exceeds our expectations on timing but the fact that the expected proceeds from these sales should exceed our G&A expenses for the coming year is particularly pleasing. It is a little over three months since Mike Whitlow and I joined the Company. In that time, we have recapitalised the Company, re-positioned our portfolio to be more cost-effective, commenced a drilling campaign and now realised funds from non-core assets.
We believe 2024 holds a great deal of promise for ECR and we look forward to updating shareholders on our ongoing progress.”
