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: 25 APRIL 2008

  • Sale of non-core exploration tenements to ASX-listed Silver Swan Group approved by Silver Swan shareholders.
  • Consideration for sale 10 million fully paid ordinary shares in Silver Swan, plus 4 million performance shares valid for five years .
  • Transaction allows Mercator to focus on its producing operations and most promising exploration prospects.

Mercator Gold plc is pleased to announce that the shareholders of Silver Swan Group Ltd (ASX: SWN) have approved the purchase of a package of Mercator’s non-core exploration tenements in the Meekatharra area of Western Australia.

The package comprises 403km2 of granted tenements and 203km2 of tenements under application.

The consideration for the sale is the issue to Mercator of 10,000,000 fully paid ordinary shares in Silver Swan and 4,000,000 performance shares.

The performance shares are valid for five years and convert to 4,000,000 fully paid ordinary shares upon Silver Swan identifying on the tenements, or on additional tenements acquired by Silver Swan with the assistance of Mercator, Indicated Mineral Resources of 350,000 ounces of gold or equivalent. In the event that Silver Swan does not achieve this within the five year timeframe, the performance shares in their entirety convert to one fully paid ordinary share in Silver Swan.

Patrick Harford, Managing Director of Mercator Gold, comments:

“The tenements sold to Silver Swan are not contiguous with Mercator’s core project areas, which include the producing Surprise open pit operation and the planned Bluebird open pit and Prohibition-Vivian-Consols underground developments.

Nevertheless these non-core tenements contain numerous base metals and gold prospects that require significant exploration to develop their full potential.

The sale to Silver Swan is expected to allow that potential to be more quickly realised whilst still delivering substantial benefits to Mercator.

Silver Swan is to embark on an aggressive exploration programme over the tenements they have acquired, and we eagerly anticipate the results.”

 

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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