9th Oct 2024 11:49
(Alliance News) - ECR Minerals PLC on Wednesday said it was making progress with its potential tax loss transference, while promising field work at its Lolworth project suggests the presence of high-grade gold.
The mining company focused on Australian gold projects said it is involved in ongoing discussions with three unnamed Australian public and private companies about the potential sale of AUD75 million in tax losses. Each company has signed a non-disclosure agreement, and the discussions came about from ECR's appointment of Argonaut PCF Ltd as an adviser in July.
The company's tax losses are held within its subsidiary Mercator Gold Australia Pty Ltd and were incurred from 2006 to date. Any sale of tax losses made will mean the disposal of some of ECR's non-core assets, likely including the sale of Mercator Gold.
ECR is also currently expecting results in the coming weeks from the 378 rock chips taken from gold prospects at the Lolworth project in Queensland. It anticipates confirmation of the presence of further high-grade gold, as initial field work has shown promising signs such as visible gold in streams and hillsides.
Civil works on ECR's maiden diamond drilling programme at the Tambo Project in Victoria are nearing completion, and the programme is expected to begin this month.
Chair Nick Tulloch said: "With much of our recent focus being on our highly encouraging results from the Blue Mountain Project, which has given us the confidence to examine the viability of installing a production plant at the site, we continue to develop the other parts of our portfolio of assets. We await rock chip results from the Lolworth Project, and we look forward to commencing our maiden diamond drilling programme at the Tambo Project later this month. We have also been very encouraged by the level of interest in our tax losses. Transferring tax losses is a specialist and bespoke process but, if successful, the potential value could be significant to ECR."
Shares in ECR Minerals were up 1.5% at 0.27 pence each in London on Wednesday morning.
By Emily Parsons, Alliance News reporter
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