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ECR Minerals tops up coffers to strengthen hand as commercial talks continue in Australia

“We are pleased to announce this oversubscribed placing at a price substantially higher than the most recent prior placing,” said CEO Craig Brown

ECR Minerals PLC -
On the ground in the Timor gold project in Victoria

ECR Minerals PLC (LON:ECR) has raised £600,000 in an oversubscribed placing to provide further support as it continues talks with potential partners about its Bailieston and Creswick gold projects. 

The AIM-listed company placed 46,153,846 new shares at a price of 1.3p apiece, arranged by broker SI Capital.

READ: ECR Minerals outlines robust financial position in interim results

Investors in the placing will receive one warrant for each placing share, which is exercisable to subscribe for a new ECR ordinary share at a price of 2.1p for a period of 24 months from the date of admission. 

If all the warrants were to be exercised, this would generate proceeds of approximately £969,000 for the company.

The proceeds of the capital raise will be used to support the activities around its gold exploration projects in Victoria, Australia, in particular, the company said. 

“We are pleased to announce this oversubscribed placing at a price substantially higher than the most recent prior placing,” said chief executive Craig Brown, referring to the £0.5mln fundraising at 0.5p in early April. 

He added: “The funds raised take the company’s cash position to approximately £1.25mln and the directors believe this puts ECR in a strategically strong position with regard to commercial discussions over our project interests and for the continuation of exploration.”

Final results from the company at the end of last month, where operating losses were reduced to £369,102, have seen the shares ascend to levels last sustained around three years ago. 

As well as equity issues, cash in recent months has been boosted by licence sales for gold exploration projects in Victoria, Australia to Fosterville South Exploration for a total potential cash consideration of up to A$2.5mln.

Quick facts: ECR Minerals PLC

Price: 2.05 GBX

AIM:ECR
Market: AIM
Market Cap: £13.14 m
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