ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce its intention to return to drilling in Victoria by the end of the year alongside an extension of the directors’ salary sacrifice scheme.
Drilling plans
Since their arrival in September 2023, the new management team of ECR have been examining the Company’s properties, including looking at ECR’s own historic data as well as the results of previous and current exploration activity in the locality. Supported by professional advisers, the management team have conducted a thorough review of all information available, alongside an assessment of practical exploration objectives, in determining the Company’s forthcoming plans.
The Board as a whole has also been encouraged by the recent activity in Victoria, particularly the drilling intercepts by ASX listed Southern Cross Gold Ltd (ASX: SXG) at its Sunday Creek project and the recommencement of exploration to the north of Bendigo by ASX listed Falcon Metals Ltd. (ASX: FAL). With ECR’s infield work programme advancing into the progressive planning and development phase, the Board considers that this is the right time to re-evaluate ECR’s gold assets at Creswick and Bailieston for the Australian summer field season. Drilling permissions have been approved by the relevant governmental authorities and the Board is currently negotiating contracts and pricing with a local drilling company with a target of commencing before the Christmas holiday period. Importantly, any drilling undertaken will be funded from the Company’s existing cash resources.
Salary sacrifice
At the time of the fundraising announced in September 2023, four members of the board of directors, David Tang, Andrew Scott, Adam Jones and Trevor Davenport, agreed to subscribe for new ordinary shares in ECR (“New Ordinary Shares”) in lieu of an aggregate of £40,000 salary (£10,000 each), thereby further preserving the Company’s cash resources.
These New Ordinary Shares will be issued on or around 31 March 2024, with admission to trading commencing on or around 1 April 2024. The number of the New Ordinary Shares to be issued will be calculated by reference to (i) the price at which an equity fundraising in the Company is carried out in the period of the salary sacrifice or (ii) if there is no fundraising, the price equal to the volume weighted average price of ordinary shares in the Company calculated over the previous 14 days, provided always that the minimum ordinary share price that shall apply is 0.175 pence. In each case, the issue of these New Ordinary Shares is conditional on the relevant person being a director of the Company. A further announcement will be made at that time.
Nick Tulloch and Mike Whitlow are already remunerated substantially by the issue of New Ordinary Shares as announced on 18 September 2023.
ECR Chief Operations Officer Mike Whitlow commented: “The latest positive news within our postcode speaks for itself. We take great encouragement from the recent announcements reported by our peers and we believe that ECR has sufficient upside opportunities in Victoria to warrant a return to drilling. We will provide further details in the coming weeks as we finalise our plans.
“I am also pleased that our strategy is being further supported by members of the board who are continuing our ethos of aligning themselves with our shareholders and conserving the Company’s cash resources.”
Interview
Watch our Back to Victoria interview with Nick Tulloch and Adam Jones at the link below:
