ECR Minerals PLC (LON:ECR) has sold a number of non-core exploration licences in a cash deal worth up to A$2.5mln.
The buyer, Toronto Venture listed Fosterville South, will pay A$500,000 immediately and the remainder would be payable contingent upon future results.
It will receive A$1 for every ounce of gold or gold equivalent defined as resources up to a maximum of A$1mln, and, another A$1 per ounce of gold or gold equivalent produced from within the area.
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The transaction covers the Avoca, Moormbool and Timor exploration projects.
ECR chief executive Craig Brown told investors that the initial A$500,000 payment would put the company in a robust working capital position, which can be applied towards the development of core projects.
“We are delighted to sell these non-core but high-potential licences to Fosterville South, while maintaining exposure to upside from the Licences as a result of future resource estimation or production,” Brown said.
“We believe Fosterville South is well placed to advance the Licences with its strong local exploration team and backing from North American high-net worth and institutional investors, while ECR will continue to concentrate its resources on our core projects in Victoria, Bailieston and Creswick.”
Brown added: “It is worth noting that other external parties are currently reviewing data on our Bailieston and Creswick gold projects with a view to potential commercial transactions, including joint venture opportunities, although there can be no guarantee that any transaction will occur.
“In addition, whilst ECR remains open to transactions on these licence areas, the ECR board believe both to hold considerable potential and inherent value for the company.”