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.

 

THEMAC RAISES C$10,200,000 FROM MARLEY HOLDINGS FOR DEVELOPMENT OF COPPER FLAT PROJECT

London: 8 November 2010 – Electrum Resources plc, the diversified mineral and renewable energy development company, is pleased to draw attention to the announcement made today by THEMAC Resources Group Ltd (“THEMAC”) (TSXV: MAC.H) regarding a C$10,200,000 financing of THEMAC by Marley Holdings Pty Ltd (“Marley Holdings”), THEMAC’s majority shareholder.

Highlights:

-       Marley Holdings (or its affiliate Tulla Resources Group Pty Ltd) to purchase 40,000,000 units of THEMAC, each unit consisting of one common share and one common share purchase warrant, at $0.255 per unit for total proceeds of C$10,200,000 (the “Financing”). Each warrant will entitle the holder to purchase a further common share for a period of five years from closing of the Financing, at C$0.34 per common share.

-       The Financing is expected to enable completion of the purchase by THEMAC of Electrum’s exclusive option (the “Option”) over a 100% interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA (the “Transaction”) and to provide funding for the exercise of the Option thereafter.

-       The proceeds of the Financing will also fund ongoing feasibility, permitting and other development work at the Copper Flat project.

-       The Financing is to be completed concurrently with the Transaction and is subject to the approval of the TSX Venture Exchange and the disinterested shareholders of THEMAC. Shareholder approval will be sought at THEMAC’s AGM to be held in December 2010.

-       After completion of the Transaction and the Financing, Electrum’s total shareholding in THEMAC will be 14.5 million common shares, equivalent to approximately 20% of THEMAC’s issued common shares. Electrum will also hold a total of 14.5 million common share purchase warrants of THEMAC. Exercise of Electrum’s warrants would allow the Company to increase its shareholding to approximately 33% of THEMAC’s issued shares (assuming the issue of no other shares). Following the exercise of Electrum’s warrants along with all warrants and options held by other parties, the Company’s interest in THEMAC would be approximately 22%.

-       The full announcement made by THEMAC may be viewed on SEDAR (www.sedar.com).

Patrick Harford, Managing Director of Electrum Resources plc, comments:

“Completion of the Transaction will give Electrum a significant shareholding in THEMAC, which will as a result of the Financing be well funded to continue advancing the Copper Flat project through feasibility and permitting with the objective of returning the project to production as soon as possible. Accordingly, we anticipate substantial future growth in the value of our interest in THEMAC.”

About Marley Holdings

Marley Holdings is controlled by Kevin Maloney, a director of THEMAC and founder of The MAC Services Group Pty Ltd (ASX: MSL) (“The MAC Services”), Australia’s largest listed provider of remote area mining accommodation and services. Marley Holdings is trustee for The Maloney Family Trust in respect of its 52% shareholding in The MAC Services, which listed on the ASX in 2008.

The MAC Services is expected to be acquired by Oil States International, Inc (NYSE: OIS), which has made an offer of A$3.90 cash per share less any dividends declared or paid by The MAC Services after 15 October 2010, valuing The MAC Services at an equity value of approximately A$651 million on a fully diluted basis.

About the Transaction

As consideration for the purchase of the Option, THEMAC will issue to Electrum 10,500,000 common shares and 10,500,000 common share purchase warrants. Each warrant will entitle the holder to acquire an additional common share for a period of five years after closing of the Transaction at a price of C$0.28 per share.

Electrum has additionally acquired 4,000,000 subscription receipts of THEMAC, which will convert to 4,000,000 common shares and 4,000,000 common share purchase warrants on completion of the Transaction. Each warrant issued in connection with the subscription receipts will entitle the holder to acquire an additional common share until 4 May 2011 at a price of C$0.28 per share.

Completion of the Transaction is subject to a number of conditions, including TSX Venture Exchange acceptance and disinterested shareholder approval.

About Electrum

Electrum Resources plc is a mineral and renewable energy development company with interests in Argentina, the USA, Indonesia, Thailand and Australia.

Electrum’s interests in Argentina include the Sierra de las Minas and Los Aquirres gold/base metal projects, at which the Company is pursuing an exploration strategy oriented around high grade, smaller tonnage targets potentially suitable for progression towards early mining.

 

For further information please contact:

Electrum Resources plc
Michael Silver, Chairman Tel: +44 (0) 20 7929 1010
Patrick Harford, Managing Director
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
Daniel Stewart & Company plc
Oliver Rigby/Tessa Smith Tel: +44 (0) 20 7776 6550
Old Park Lane Capital plc
Forbes Cutler Tel: +44 (0) 20 7518 2603
Director of Corporate Broking
Barry Kaplan Associates
Larry Kaplan Tel: +1 732 747 0702