The share price, already flying high after its interim results and news of drilling success at its Blue Moon gold prospect in Australia, rose 14.8% to 0.78p after the company raised £650,000 through the issue of 92.9mln shares at 0.7p a pop.
The company said that it now has sufficient working capital against current operational plans to last until the third quarter of next year, at least, while further funds could find their way into the coffers should any warrants holders choose to exercise the warrants that have been attached to the newly issued shares. Should all warrants be converted this would generate about £1,045,000 before expenses for the company.
ECR said the funds raised would be used to expand its Australian operations, including an accelerated development programme at the Blue Moon target in the Victoria region.
The company also now has the funds to consider additional opportunities in Australian gold and strategic metals, to complement existing interests.
Adding to #ECR position - market trying to make it look weak. Ha! Quite the opposite!— paul johnson (@pauljohnson9691) July 11, 2018
“We are delighted to announce this strategic financing which considerably bolsters the company’s working capital position and provides a significantly extended cash runway with which to implement our operational plans,” said Craig Brown, the chief executive officer of ECR Minerals.
“The gold mineralisation identified at Blue Moon and announced on Friday 6th July 2018 is a priority target for ECR, and as such, the company intends to pursue further work on this target immediately. Furthermore, the company is aware of numerous opportunities to augment its Australian gold exploration portfolio, and the additional funds raised will enable ECR to review and crystallise those opportunities that could add considerable value for shareholders,” he added.