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 PROVIDES UPDATE ON STATUS OF COPPER FLAT PROJECT ACQUISITION AND ONGOING DEVELOPMENT WORK

 

London: 24 November 2010 – Electrum Resources plc is pleased to draw attention to the announcement made today by THEMAC Resources Group Ltd (“THEMAC”) (TSXV: MAC.H) regarding the status 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.

 

Highlights:

-       Marley Holdings Pty Ltd, a company controlled by THEMAC director Kevin Maloney, has provided an C$3.5 million advance to THEMAC as a precursor to completion of the C$10.2 million equity financing (the “Financing”) announced by THEMAC on 8 November 2010. The advance has been used to make the latest payment required to exercise the Option in the amount of US$1.85 million, and to continue permitting and project development work at Copper Flat.

 

-       The agreement for the purchase of the Option by THEMAC has been amended to enable completion of the Financing as proposed. Following the amendments and in view of the terms of the Financing it is anticipated that Electrum’s shareholding in THEMAC will not be subject to escrow imposed by the TSX Venture Exchange after completion of the purchase and that the validity of 4 million common share purchase warrants of THEMAC to be issued to Electrum that are due to expire on 3 May 2011 will be extended to 3 May 2013.

 

-       THEMAC has entered into an agreement for the purchase of water rights on lands adjacent to Copper Flat. The water rights are additional to those already held and are required for the recommencement of production at Copper Flat

 

-       Work is underway on all major aspects of a prefeasibility study of the proposed recommencement of production at Copper Flat, and THEMAC is evaluating opportunities to accelerate the advancement of prefeasibility work to feasibility level using engineering, design and mine planning studies generated in the 1980s and 1990s, and production results recorded in 1982.

 

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

 

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

“The update given by THEMAC demonstrates that work to advance the Copper Flat project towards the recommencement of production continues on a number of fronts including permitting, resource development and engineering, and we are hopeful that the availability of previous studies will enable the relatively rapid progression of the project to feasibility.”


Electrum’s Interest in THEMAC

Electrum’s shareholding in THEMAC after the purchase of the Option 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. Following the exercise of Electrum’s warrants along with all warrants and options held by other parties, the Company’s interest in THEMAC’s issued common shares would be approximately 22%.

The Financing will be provided to THEMAC by Marley Holdings Pty Ltd or its affiliate Tulla Resources Pty Ltd, and will take the form of a placement of 40 million units of THEMAC at C$0.255 per unit for total proceeds of C$10.2 million. Each unit will consist of one common share and one common share purchase warrant exercisable at C$0.34 for five years. Shares in THEMAC are currently trading at approximately a 100% premium to the Financing price.

Shareholder approval for the Financing will be sought at the THEMAC’s annual and special general meeting to be held on 21 December 2010, and it is anticipated that the Financing and the purchase of the Option will be completed shortly thereafter.

 

About Electrum

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

 

For further information please contact

 

Electrum Resources plc

Michael Silver, Chairman

Patrick Harford, Managing Director

 

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Website:  www.electrum-resources.com

 

Tel: +44 (0) 20 7929 1010

Daniel Stewart & Company plc

Oliver Rigby

Tel: + 44 (0) 20 7776 6550

Old Park Lane Capital PLC

Forbes Cutler, Director of Corporate Broking

Tel: +44 (0) 20 7518 2603

 

Barry Kaplan Associates

Larry Kaplan

Tel: +1 732 747 0702

 

AIM: ECR

US OTC: MTGDY