ECR Minerals PLC (AIM:ECR) shares jumped in Thursday's trade after it announced that it has entered into a legally binding agreement to acquire Raglan Resources Pty Ltd, owner of the Raglan alluvial gold project in Queensland, Australia.
The acquisition is being made for a cash consideration of A$1.01 million and will be funded from the company’s existing cash resources.
The Raglan Project includes a granted mining lease covering around 300 acres and approximately 2.9 kilometres of creek systems. The site includes a near-new 60 tonne per hour wash plant, gold room, water supply, camp facilities and a mobile mining fleet, which the company said together are estimated to have a second-hand value close to the purchase price.
“It is very literally a turnkey operation with a mining lease and all equipment in place," said chair Nick Tulloch.
He added: “Our due diligence confirmed what we consider to be an economic mining plan as well as exploration upside.”
In London, ECR shares were up 27% changing hands at 0.27p.