ECR Minerals (LON:ECR) has become the latest entrant in resource investor Metal Tiger’s (LON:MTR) portfolio of mining juniors.
Metal Tiger is to subscribe for £100,000 worth of shares out of a placing to raise £250,000 at 0.02p per share for the gold explorer.
That will give it a 7.5% stake following completion of the funding, with a further 500,000 warrants that exercise at a price dependent on how much gold is found at the Danglay gold project in the Philippines.
Metal Tiger should know ECR well as its executive director Paul Johnson has been on the ECR board for a year in a non-executive capacity.
The other backers of the placing are high net worth investors, said the company.
Stephen Clayson, ECR’s chief executive, said the money raised would be used in the Philippines, including Danglay, and Australia.
Earlier this month it unveiled a maiden resource estimate for Danglay (formerly known as Itogon) of 1.2mln tonnes of inferred resources at a grade of 1.6 grams per tonne, or 60,500 ounces of gold.
In Australia, Clayson said it was now unlikely its Mercator business would be sold and with tax losses of A$66mln the aim is to find a mining project with clear production potential.
“Australia has become a more attractive operating environment for mineral projects following the substantial depreciation in the Australian dollar against the US dollar and the pound which has occurred during 2015,” he said.
Cameron parry, Metal Tiger’s chief executive added : “The recent decline in share price of ECR and commensurate low valuation, combined with the upcoming potential news flow with regard to company operations, makes our investment a highly attractive opportunity.”