ECR Minerals PLC (LON:ECR) is to draw-down on a convertible financing deal so it can further assess immediately the recently acquired Avoca and Bailieston gold projects in Victoria, Australia.
ECR with YA Global has agreed the former will drawdown on four loan tranches under the facility for a total of US$600,000. The first tranche of US$250,000 has already been taken.
The second of US$150,000 will be drawn down on or about April 1 this year; the third to the tune of US$100,000, will be drawn down on or about May 2 and the fourth of US$100,000, will be drawn down on or about June 1 this year.
Chief executive Stephen Clayson said of the Avoca and Bailieston gold projects.
"This assessment will focus on confirming the potential to generate relatively near term revenue from the reprocessing of historical mine dumps at the Avoca project, as previously announced.
"Details of the work to be carried out in the coming months are now being finalised, and will be announced in due course.
"The acquisition of the Avoca and Bailieston projects represents a strategic shift for ECR towards operations in Australia through MGA, and the establishment of a near term revenue stream is a key element of this strategy.”
The facility is available for three years from September 2014 and means ECR can drawdown loans up to US$10 million.
ECR shares eased over 18% to stand at 0.0225p.