ECR is a mineral exploration and development company, incorporated in the UK.

ECR’s wholly owned Australian subsidiary Mercator Gold Australia (MGA) has agreed to acquire 100% ownership of the Avoca and Bailieston gold projects in Victoria, Australia. Mercator Gold Australia is estimated to have tax losses of approximately AUD 66M as at 30 June 2015, which may be available, subject to certain conditions (as described in ECR’s announcement dated 4 December 2014), to reduce MGA’s future taxable profits.

ECR has the right to earn a 50% interest in the Danglay epithermal gold project in the Philippines. Danglay is an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015, and is available for download from ECR’s website.

ECR’s wholly owned subsidiary Ochre Mining has a 100% interest in the SLM gold project in La Rioja Province, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near term production.

 

ECR shares are listed on the AIM market of the London Stock Exchange with the symbol ECR.

MERCATOR GOLD plc
(“Mercator Gold”, “Mercator” or “the Company”)

AIM: MCR

US OTC: MTGDY

 

LONDON: 8 OCTOBER 2004 - Mercator Gold PLC (“Mercator” or “the Company”), the UK based gold exploration company, today joins AIM (MCR).

Key Statistics  
Number of Ordinary Shares in issue immediately on Admission 51,494,800
Number of Warrants in issue at Admission 37,294,600
Market Capitalisation of the Company at the pre-Admission Unit Placing Price £3.09 m

 

Prior to Admission to AIM, Mercator raised £0.52 million in a private placing of 8.7 million units at 6.0p (Unit = 1 fully paid share and 1 free piggy back warrant which is listed and free trading (MCRW). Phillip Securities is acting as broker and Beaumont Cornish as nominated adviser.

Shareholders (issued shared capital) On Listing %
Directors Holdings 11,860,200 23.02
First International Resources Ltd 8,250,000 16.02
Caledonian Capital Ltd 8,150,000 15.83
Newlands Resources Ltd 5,800,000 11.26
Ocean Resources Capital Holdings plc 5,000,000 9.71
Hartford Investment Group Ltd 4,200,000 8.15
City Equities Ltd 4,000,000 7.77
Hoodless Brennan & Partners 2,500,000 4.85

 

Patrick Harford, Managing Director of Mercator, said: “In the last year, there has been a renewed investor interest in the gold sector. Our AIM listing enables us to take advantage of this favourable market and raise the capital we require to pursue our goal of making significant gold discoveries.” 2 Formed in March 2004, Mercator’s strategy is to identify large ground holdings of gold in and around known mining areas, on a global basis. The Company is targeting discoveries totalling 2 million ounces of gold in orebodies greater than 500,000 ounces.

Mercator benefits from access to the SpaDis technology, developed by Vearncombe & Associates Pty Ltd. This is an exploration tool previously only available to major mining companies which allows for rapid processing of large geological databases and the prioritasion of drilling targets. Using SpaDis, which to date has only been used by the majors, the team will be able to assess large databases from known gold areas and prioritise key target areas quickly, keeping land holding costs to a minimum.

The first opportunity is at Meekatharra in Western Australia, in a joint venture with St Barbara Mines (“SBM”), where the team will test its approach on a known productive gold field in this politically stable environment. Mercator will carry out a 20,000 metre drilling programme between October and December 2004 to test eight high priority gold targets generated by a SpaDis analyses of +60 gold anomalies identified in previous exploration work. Each target has been selected for its potential to host in excess of 500,000 ounces.

The joint venture agreement between Mercator and SBM entitles the Company to earn a 45% interest in the Meekatharra Properties by spending A$3m on exploration in the first two years, with a minimum of A$1m. It can then move to earn 51% for a further A$1m and 70% for A$4m, at which point SBM must contribute pro-rata to any further expenditure, or dilute its interest.

The drilling programme will test resource extention in the Brownfields and Greenfields targets.

 

For further information please contact:

Mercator Gold plc    
Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.    
   
   
   
Phillip Securities UK Limited    
Nick Bealer Tel: +44 (0) 20 7553 8281
     
     
     
Parkgreen Communications    
Justine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713

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