Street Calls of the Week
LONDON - ECR Minerals plc (AIM:ECR) announced Wednesday it has entered an exclusivity period to acquire the Raglan Project, a fully permitted alluvial gold operation in Queensland, Australia, for A$1.1 million (approximately £0.53 million).
The company has conditionally raised £0.65 million through a subscription of 325 million new ordinary shares at 0.20 pence each to fund the acquisition. A separate retail offer to existing shareholders to raise up to £100,000 on the same terms is also planned.
The Raglan Project, located near ECR’s existing Blue Mountain gold project, includes a mining lease covering approximately 300 acres and comes with established infrastructure including a 60 tonne-per-hour wash plant with under 1,000 hours of operational use, a gold room, fuel storage, and mobile mining vehicles.
ECR is currently conducting due diligence investigations at the site, with bulk sampling being carried out at up to five locations within the lease. The company’s Chief Geologist, Adam Jones, is leading the program, which is expected to conclude this week.
"This Proposed Acquisition offers the potential for a very significant and strategic step forward for ECR," said Nick Tulloch, ECR’s Chairman. "The Raglan Project offers synergies with our existing operations at the Blue Mountain Project and the potential to fast-track gold recovery."
The acquisition will be implemented through ECR’s wholly owned subsidiary, ECR Minerals (Queensland) Pty Ltd, acquiring Raglan Resources Pty Ltd and its subsidiary Raglan Mining Pty Ltd. The structure is expected to enable ECR to apply its existing tax losses of approximately A$75 million against any future profits from the project.
Allenby Capital Limited acted as the company’s broker for the subscription and has been appointed as Joint Broker to ECR with immediate effect.
The information in this article is based on a press release statement from ECR Minerals.
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