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Gold & silver

ECR drops plan to repay convertible loan facility

ECR currently is working on a conceptual economic study for gold production from alluvial waste dumps

ECR Minerals (LON:ECR) is mulling a number of ways to move forward after it reversed a decision to repay a convertible loan facility.

The gold exploration junior had expected a better share price reaction to the news it was repaying the facility, it said.

Weakness in sterling compared to the Aussie dollar and threats of a general meeting to change the board have added to the pressure.

ECR owes £302,000 under the loan facility and has £375,000 in cash following a placing earlier this month.

The company added that it also owes chief executive Stephen Clayson £100,000 as a result of salary deferrals over the past two years.

ECR currently is working on a conceptual economic study for gold production from alluvial waste dumps at the Avoca project in Australia.

Outstanding items are the receipt of metallurgical testwork results and a compilation of resource estimates for multiple dumps, which is ongoing.

“Whilst the board considers the strategy of the group and evaluates a number of proposals for providing working capital to the group, Bill Howell [chairman] and Stephen Clayson have voluntarily reduced their salaries/fees,” the company added.

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