1st Nov 2024 10:12
(Alliance News) - ECR Minerals PLC on Friday said it has signed an exclusivity agreement with an unnamed company for the potential sale of its subsidiary, Mercator Gold Australia Pty Ltd.
The subsidiary of the mining company focused on Australian gold projects holds AUD75 million, or GBP38.1 million, in tax losses incurred by ECR Minerals from 2006 to date.
Each of the three unnamed Australian public and private companies that were in discussions about the sale in early October signed non-disclosure agreements.
The company holding the exclusivity agreement has until November 28 to negotiate the terms of a potential acquisition. ECR Minerals has received an unspecified deposit, as part of the terms of the agreement.
If final terms are agreed, the completion of the transaction may be dependent on shareholder approval at a general meeting.
Managing Director Mike Whitlow said: "This potential transaction, if concluded, represents a very significant step for ECR having the potential to deliver significant funds to the company. It aligns with our strategic focus on our core exploration activities and supports our objective of delivering long-term value to our shareholders. We look forward to working closely with them through the remainder of this process."
Shares in ECR Minerals were up 8.6% at 0.32 pence each in London on Friday morning.
By Emily Parsons, Alliance News reporter
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