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MELBOURNE - ECR Minerals plc (AIM:ECR) announced Thursday it has entered into non-binding heads of terms with Bold Gold for a proposed joint venture covering its Creswick Gold Project in Victoria, Australia.
The arrangement would allow Bold Gold to invest up to A$3 million to earn an 80% interest in the project through staged exploration expenditure, with an initial A$250,000 commitment for the first 12 months.
Under the proposed structure, Bold Gold would need to spend an aggregate of A$1.25 million over a two-year period to earn a 51% interest, followed by an additional A$1.75 million over another two years to reach the 80% stake. ECR would retain a minimum 20% interest or could elect to convert to a royalty.
The Creswick Gold Project covers approximately 45 km² and is positioned within the Dimocks Main Shale, a 25-meter-wide formation extending over 15 km. The project sits between two historically productive gold-producing areas estimated to have yielded 15 million ounces of gold.
Previous drilling by ECR has identified gold mineralization with grades up to 80.97 g/t Au and multiple intersections exceeding 20 g/t Au, according to the company’s press release statement.
ECR Chairman Nick Tulloch said the joint venture would allow the company to focus resources on its Blue Mountain Gold Project in Queensland while maintaining an interest in Creswick "without dilution to our shareholders."
The joint venture remains subject to due diligence, regulatory requirements, and the execution of a binding agreement. The Creswick Project had unaudited total assets of approximately £1.44 million for the year ended September 30, 2024.
A joint venture committee comprising two representatives from each company will determine the project’s work program once the agreement is finalized.
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