ECR Minerals #ECR – Conditional Fundraise of £580,000 & Proposed General Meeting

ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce that the Company has conditionally raised £580,000 by way of a direct subscription (“Subscription”) through the issue of 331,392,844 new ordinary shares in the Company (“New Ordinary Shares”), at a price of 0.175p per New Ordinary Share.

The Subscription, which generated material interest from a number of prospective investors, has been agreed with high net worth individuals and institutional investors and has been carried out directly by the Company, without payment of commissions.

The funds raised will be used to advance the Company’s extensive existing assets; new potential opportunities and for working capital purposes.

The issue of the New Ordinary Shares is conditional on (i) the passing of certain resolutions to give the Directors the authority to implement the Subscription and issue the New Ordinary Shares (the “Resolutions”). These resolutions are to be proposed to shareholders of the Company at an upcoming General Meeting of the Company (“General Meeting”); and (ii) Admission of the New Ordinary Shares to trading on AIM.

The Directors anticipate posting a circular convening the General Meeting shortly and a further announcement will be made at that time.

ECR Managing Director Nick Tulloch commented: “I am delighted to announce that notwithstanding the challenging market conditions, the quality of ECR’s assets has resulted in this support from a core group of high net worth and institutional shareholders.

“The Board anticipates that, if approved, the funds raised will primarily be allocated to fast track ECR’s Queensland projects, plus there are a number of new opportunities on the table that the Board may decide to progress once the appropriate due diligence has been undertaken. Along with my Board colleagues, I look forward to reporting further progress very shortly.”

Application will be made for the New Ordinary Shares to be admitted to trading on AIM (“Admission”) and it is expected that Admission will become effective on or around 10 October 2023 (subject to the date of, and approval at, the General Meeting).

If the Resolutions are not approved at the proposed General Meeting, the Company will be required to source alternative funding in the short term to meet its immediate working capital requirements.

FOR FURTHER INFORMATION, PLEASE CONTACT:

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (“MAR”), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY’S OBLIGATIONS UNDER ARTICLE 17 OF MAR. IN ADDITION, MARKET SOUNDINGS (AS DEFINED IN MAR) WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION AS PERMITTED BY MAR. THAT INSIDE INFORMATION IS SET OUT IN THIS ANNOUNCEMENT AND HAS BEEN DISCLOSED AS SOON AS POSSIBLE IN ACCORDANCE WITH PARAGRAPH 7 OF ARTICLE 17 OF MAR. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION IN RELATION TO THE COMPANY AND ITS SECURITIES

ABOUT ECR MINERALS PLC

ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km² over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company also has an option to acquire 100% of Placer Gold, which wholly owns the Hurricane Project, a later stage gold and antimony project located west of Cairns in the Hodgkinson Province, NE Queensland.

Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), Mercator Gold Australia Pty Limited has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited.

ECR holds a 90% interest in the Danglay gold project; an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.