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: 20 FEBRUARY 2008 - Mercator Gold plc (“Mercator” or “the Company”) is pleased to announce the sale of certain of its non-core exploration leases in the Meekatharra district of Western Australia to Silver Swan Group Ltd (“Silver Swan”), an ASX listed company. The tenements are prospective for base metals, gold and industrial minerals.

The tenements being sold comprise 46 granted tenements and 14 granted applications covering approximately 600 sq km representing about 30% of the Company’s total landholdings in the Meekatharra District.

The consideration for the sale of the tenements to Silver Swan will be satisfied by the issue to Mercator of 10,000,000 fully paid Silver Swan ordinary shares of A$0.20 each and 4,000,000 Silver Swan performance shares. These performance shares will convert to fullypaid ordinary shares subject to certain terms and conditions, the most notable of which is the proving up of 350,000 ounces of gold, or gold equivalent, in to the indicated resource category. Silver Swan presently has 23,350,001 shares in issue. Mercator’s initial shareholding of ten million shares will represent approximately 30% of the issued capital of Silver Swan. The transaction is subject to a due diligence process and the receipt of approval from the shareholders of Silver Swan.

Michael Elias, a non-executive director of Mercator, will assume the Non-Executive Chairman position of Silver Swan and Dr Susan Vearncombe, former General Manager- Geology of Mercator Gold plc will become the Managing Director of Silver Swan.

 

Managing Director of Mercator Gold, Patrick Harford, said:

“The rational for the sale is the tenements, none of which are contiguous with Mercator’s core holdings covering the Paddy’s Flat, Yaloginda, Nannine and Reedy areas, contain numerous base metals and gold prospects that require significant exploration to develop their full potential; the sale to Silver Swan will allow that potential to be quickly realised whilst delivering significant benefits to Mercator’s shareholders; and Silver Swan presently has A$2.4 million available for exploration expenditure and is expected to aggressively develop the potential of the tenement package.”

 

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.    
   
   
   
Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888
Simon Rothschild    
Keith Irons    
Oliver Winters    

 

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