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: 28 OCTOBER 2005 - Mercator Gold plc (AIM: MCR/MCRW) is pleased to announce that it has entered into agreement to acquire from St Barbara Mines Limited (“SBM”) its entire gold exploration and mining assets in the highly prospective Meekatharra greenstone belt of Western Australia.

The acquisition comprises the 55% balance of the Annean Joint Venture, the 3,000,000 tonnes per annum Bluebird mill and gold processing facility and additional mining and exploration licenses with the potential to transform the Company from explorer to gold producer. The total purchase consideration will comprise AUD$18 million (GBP£7,560,000) in cash and new shares plus the adoption of bonding requirements of approximately AUD$3 million (GBP£1.26 million).

The acquisition represents a “reverse” transaction under the AIM Rules, and accordingly the existing Mercator shares and the warrants of the Company shall be immediately suspended from trading until either (a) the Company mails to its shareholders the necessary meeting materials for shareholder approval of the acquisition (expected to be a date no later than 30 December 2005) or (b) the company elects not to proceed with the acquisition in accordance with the agreement with St Barbara.

The acquisition is subject to a 30-day due diligence period and various shareholder and regulatory approvals.

A more detailed news release will be issued by the Company in due course.

 

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.    
   
   
   
Beaumont Cornish Limited    
Roland Cornish Tel: + 44 (0) 20 7628 3396
     
     
     
King & Shaxson Capital Ltd    
Nick Bealer Tel: + 44 (0) 20 7426 5986
     
     
     
Ocean Equities Ltd    
Will Slack Tel: + 44 (0) 20 7786 4375
     
     
     
Parkgreen Communications    
Justine Howarth / Ana Ribeiro Tel: + 44 (0) 20 7493 3713

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