ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
US OTC: MTGDY
LONDON: 14 OCTOBER 2014 - ECR Minerals plc is pleased to provide the following update regarding its 100% owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).
Further to the Company’s announcement of 15 September 2014, the external administrators of MGA (the “Administrators”) have informed the Company that a number of dividend cheques remain unpresented, and that the Administrators intend to contact the relevant parties this week and request that the cheques are presented without delay. The Administrators have previously advised that after completing their statutory duties, which include awaiting the presentation of all dividend cheques to MGA’s bank account, the Administrators expect to release MGA from administration.
Following MGA’s release from administration it is expected by the Company that MGA will possess tax losses estimated to total approximately A$80 million, as previously announced. These tax losses will be of significant benefit to MGA should it be successful in establishing profitable business activities following its release from administration.
In the expectation that MGA will be released from administration in the relatively near future, ECR is investigating the feasibility of a sale of the Company’s shares in MGA. At this stage there can be no assurance that applicable regulations will permit such a sale without affecting the validity of the tax losses (which would be the motivation for a purchaser to enter into the transaction) or that a suitable third party will be identified. Any material progress in this area will be announced.
The figure of approximately A$80 million is the latest available estimate of MGA’s accumulated tax losses and is stated as at 30 June 2013. Analysis to confirm MGA’s tax loss position as at 30 June 2014 is in progress (30 June being MGA’s financial year-end). The availability of MGA’s tax losses is subject, inter alia, to MGA’s compliance with the “continuity of ownership test”, as that term is used in the context of Australian taxation, at all relevant times. Compliance with this test is determined by reference to ECR’s register of shareholders and the variations thereto that occur over time. The Company considers that at the present time, MGA is in compliance with the continuity of ownership test.
ECR is a mineral exploration and development company with, among other interests, the right to earn a 50% interest in the Itogon gold project in the Philippines. Itogon is an advanced exploration project located in a gold and copper mining district on the island of Luzon in the north of the Philippines.
ECR has a 100% interest in the Sierra de las Minas gold project in Argentina, the exploration strategy for which is to delineate multiple medium to high grade, low tonnage deposits suitable for advancement to production on a relatively low capital, near term basis.
ECR holds a substantial minority stake in THEMAC Resources Group Ltd (TSX-V: MAC), which is focused on the development of the Copper Flat copper-molybdenum-gold-silver porphyry project in New Mexico, USA.
FOR FURTHER INFORMATION PLEASE CONTACT:
|ECR Minerals plc|
|Paul Johnson, Non-Executive Chairman||Tel:||+44 (0)20 7929 1010|
|Stephen Clayson, Director & Chief Executive Officer|
|Daniel Stewart & Company plc|
|Emma Earl/David Coffman (Nominated Adviser)||Tel:||+44 (0)20 7776 6550|
|Colin Rowbury (Broker)|
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such statements may be subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations. There can be no assurance that such statements will prove to be accurate and therefore actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward looking statements. Any forward looking statements contained herein speak only as of the date hereof (unless stated otherwise) and, except as may be required by applicable laws or regulations (including the AIM Rules for Companies), the Company disclaims any obligation to update or modify such forward looking statements as a result of new information, future events or for any other reason.