US OTC: MTGDY
ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
UPDATE ON DANGLAY GOLD PROJECT, PHILIPPINES
LONDON: 24 FEBRUARY 2017 - The directors of ECR Minerals plc (the “Directors”), a gold exploration company with assets in Australia, Argentina and the Philippines, provide the following update regarding the Danglay gold project in the Philippines.
- ECR continues to monitor political developments in the Philippines affecting the mining industry and to assert the Company’s rights in respect of the Danglay project
- A proposal has been made by ECR to Tiger International Resources, Inc. (“Tiger International”) that would entail ECR acquiring a strategic shareholding in Tiger International
- The Directors, with advice from ECR’s auditors, are reviewing the carrying value of the Company’s investment in Danglay in preparing the audited financial statements for the year ended 30 September 2016
In accordance with the terms of the Earn-in and Joint Venture Agreement (the “Agreement”) between ECR, Cordillera Tiger Gold Resources, Inc. (“Cordillera Tiger”) and Tiger International, the Directors consider it clear that ECR has earned a 25% interest in the Danglay project, as previously announced. Although ECR has terminated its Earn-in Option (as that term is defined in the Agreement) in relation to Danglay, ECR has fulfilled the two necessary conditions under the Agreement to earn a 25% interest in the project: estimation of a Mineral Resource in accordance with Canadian NI 43-101, and expenditure of more than US$500,000 on exploration.
Tiger International presently refuse to acknowledge ECR’s 25% interest in the Danglay project (via Cordillera Tiger) and are not engaging with ECR to discuss the future of the project. Tiger International has also criticised the adequacy of the exploration data produced by ECR as a result of the Company’s past work at Danglay. The Directors consider these criticisms to be without basis.
In January 2017, ECR appointed legal counsel to begin the process of enforcing the Company’s rights in relation to Danglay either in court or through arbitration. In parallel, the Company has submitted a proposal to Tiger International to encourage an amicable resolution of the dispute. The Company will keep the market apprised of material developments.
Further to the Company’s announcement of 11 November 2016 regarding the renewal of the Exploration Permit (the “EP”) comprising the Danglay project, the Company advises that notice of renewal of the EP for a further two-year term has still not been received by Cordillera Tiger. ECR remains unaware of any reason for the application for renewal not to be granted, although there can be no guarantee that it will be granted.
The carrying value of ECR’s investment in the Danglay project in the Company’s unaudited financial statements for the six months to 31 March 2016 was £1,082,000. Taking into account the matters set out above, the Directors, with advice from ECR’s auditors, are reviewing the status of the investment in the project in preparing the Company’s year-end audited financial statements.
Craig Brown, CEO of ECR, commented:
“Although ECR’s operational focus remains on the Avoca and Bailieston gold projects in Victoria, Australia, and the SLM gold project in Argentina, the Danglay project with its NI 43-101 Mineral Resource remains a promising project. The mining industry in the Philippines currently faces an uncertain operating environment, however we remain hopeful that the situation may improve in future. Therefore whilst we advance ECR’s other projects, the Directors are determined to protect ECR’s investment in the Danglay project and drive the project forward as far as possible.”
Market Abuse Regulations (EU) No. 596/2014
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
|ECR Minerals plc||Tel: +44 (0)20 7929 1010|
|William (Bill) Howell, Non-Executive Chairman|
Craig Brown, Director & CEO
Ivor Jones, Director & COO
|Cairn Financial Advisers LLP||Tel: +44 (0)20 7213 0880|
|Emma Earl / Jo Turner|
|Optiva Securities Ltd||Tel: +44 (0)203 137 1902|
|FlowComms||Tel: +44 (0)7891 677 441|
|Blytheweigh||Tel: +44 (0)20 7138 3204|
|Tim Blythe / Camilla Horsfall / Nick Elwes|
ECR is a mineral exploration and development company. In addition to the Danglay project discussed in this update, ECR’s wholly owned Australian subsidiary Mercator Gold Australia has 100% ownership rights in respect of the Avoca and Bailieston gold projects in Victoria, Australia. ECR’s wholly owned subsidiary Ochre Mining has a 100% interest in the SLM gold project in La Rioja, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near term production.
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such statements may be subject to numerous 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 because of new information, future events or for any other reason.