ECR Minerals (LON:ECR) has revealed that it could give its shareholders part of the company’s 19% stake in TSX Venture-listed THEMAC Resources (CVE:MAC).
ECR said it is aware of its shareholders’ enthusiasm for THEMAC and the Copper Flat project in New Mexico.
It added that it remains open to offloading some or all of its interest in THEMAC for “an acceptable cash value”.
“Presently the book value of ECR’s investment in THEMAC is substantially in excess of the company’s market capitalisation,” a statement from ECR read.
“By distributing some of the securities comprising the investment, it could be expected that substantively more of this value would become tangible to ECR shareholders, who would become holders of THEMAC shares and/or warrants directly.”
The company added that it is early days and that any decision would be subject to court approval, as well as requiring the go-ahead from ECR shareholders and convertible loan note holders.
If it does decide to go through with the plan, ECR will need to boost its working capital before presenting it to the court.
Meanwhile the company has offloaded its entire shareholding in West Wits Mining (ASX:WWI) for A$170,000 to fund its ongoing activities.
The news comes on the day that THEMAC revealed that drilling at Copper Flats confirmed the presence of significant copper-molybdenum grades.
Four out of the five holes drilled were successful, while one contained no significant mineralisation.
“We were excited to see the long continuity of reserve grade present in all four holes,” said THEMAC’s vice president of exploration, Ray Irwin.
“When combining the results from these four holes with our earlier drilling, we can clearly see that the mineralization is extending to the northeast and remains open to some degree along the deposit's major northeast trending structure.”
The geotechnical report is due out this month and once this is out, the company will immediately start to optimise the pit, THEMAC added.
ECR shares lost 4.6% to 0.301p each on the news.