TIDMECR
AIM: ECR
11 July 2018
ECR MINERALS plc
("ECR Minerals", "ECR" or the "Company")
STRATEGIC FINANCING, BUSINESS UPDATE & NEW JOINT BROKER
ECR Minerals plc (LON:ECR) the precious metals exploration and
development company is pleased to announce details of a strategic
financing, business update for shareholders and appointment of a
new broker.
Highlights:
-- ECR Minerals has secured a strategic financing package, raising
GBP650,000 through the issue of 92,857,143 new ordinary
shares
("Financing shares") at a price of 0.70p per share (the
mid-price of
ECR at the date/time the financing was commenced);
-- Allowing for the existing cash at bank pre-financing and the funds
raised today, ECR has sufficient working capital against
current
operational plans, until at least Q3 2019, with any warrant
exercises
further extending this cash runway;
-- Funds raised will be used to expand ECR's Australian operations,
including an accelerated development programme at the Blue Moon
target
in Victoria region, where 39.5 metres of gold mineralisation
was
identified during the latest drilling campaign (as announced on
6 July
2018);
-- In addition, the funds raised will enable ECR to consider additional
opportunities in Australian gold and strategic metals, to
complement
existing interests;
-- Each strategic financing share has a warrant attaching to subscribe
for a further new ordinary share in ECR Minerals plc at a price
of
1.125p within two years of the admission date of the above
financing
shares resulting in the issue of 92,857,143 warrants over new
ordinary
shares.
-- However, should the 5 day volume weighted average share price ("VWAP")
of ECR exceed 5.0p (five pence) the Company will have the right
to
accelerate conversion of any outstanding warrants (see summary
of
terms set out below);
Should all warrants be converted (which cannot be guaranteed)
this would generate approximately GBP1,045,000 before expenses for
the Company;
-- ECR will, as a condition precedent to the offer of financing, create a
pool of 25m options (the "Options") to be allocated amongst
current &
future directors, staff and key consultants. The options will
carry an
exercise price of 1.125p per new ordinary share and will be
subject to
the requirement that the volume weighted average price of ECR
shares
must exceed 1.75p for five consecutive trading days before the
options
become ratified and exercisable;
-- SI Capital Limited, who arranged the financing, have been appointed as
joint brokers to ECR with immediate effect. In lieu of fees,
SI
Capital will be awarded with 2.5million warrants to subscribe
for 2.5m
new ECR ordinary shares within the two year period following
their
appointment at a price of 1.5p per share.
Craig Brown, Chief Executive Officer of ECR Minerals plc,
commented: "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.
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.
I look forward to updating shareholders as we implement our
plans for the Company."
FURTHER INFORMATION
STRATEGIC FINANCING
ECR has secured a strategic financing raising GBP650,000 through
the issue of 92,857,143 new ordinary shares ("New Ordinary Shares")
at a price of 0.70p per share to support proactive development of
its existing interests and to enable the Company to engage with new
opportunities, principally in respect of Australian gold and
strategic metal exploration.
Each strategic financing share has a warrant attaching to
subscribe for a further new ordinary share in ECR Minerals plc at a
price of 1.125p within two years of the admission date of the above
financing shares. Should the 5 day VWAP of ECR exceed 5p, the
Company will have the right but not the obligation to force the
exercise of the remaining warrants by issuing a 7 day notice of
accelerated exercise to warrant holders. Any warrants not exercised
during the 7 day notice period would lapse.
MANAGEMENT AND CONSULTANT OPTION POOL
The Company is to create a pool of an additional 25 million
options at an exercise price equivalent to the financing warrant
price or 1.125p per share.
It is proposed these options will vest immediately but will only
become exercisable when the five consecutive trading day volume
weighted average ECR share price exceeds a 1.75p threshold.
It is the intention that the Options will be allocated amongst
the current directors, any new directors, staff of ECR and key
consultants.
Where applicable the Options will be structured under a tax
efficient option scheme.
Further details will be provided in due course when the options
are issued.
ADMISSION OF STRATEGIC FINANCING SHARES AND TOTAL VOTING
RIGHTS
Admission of the New Ordinary Shares is expected to occur on or
around 25 July 2018. Following Admission of the Financing Shares,
ECR's issued ordinary share capital will comprise 340,462,383
ordinary shares of 0.001 pence. This number will represent the
total voting rights in the Company, and, following admission of
both the placing and subscription shares, may be used by
shareholders as the denominator for the calculation by which they
can determine if they are required to notify their interest in, or
a change to their interest in, the Company under the Financial
Conduct Authority's Disclosure and Transparency Rules. The new
shares will rank pari passu in all respects with the ordinary
shares of the Company currently traded on AIM.
APPOINTMENT OF NEW BROKER
SI Capital Limited, who arranged the financing, have been
appointed as joint brokers to ECR with immediate effect. In lieu of
fees, SI Capital will be awarded with 2.5million warrants to
subscribe for 2.5m new ECR ordinary shares within the two year
period following their appointment at a price of 1.5p per
share.
COMPETENT PERSON STATEMENT
The information in this announcement that relates to Exploration
Results is based on information compiled by Dr Rodney Boucher of
Linex Pty Ltd. Linex Pty Ltd provides geological services to
Mercator Gold Australia Pty Ltd, including the services of Dr
Boucher, who has a PhD in geology, is a Member and RPGeo of the
Australian Institute of Geoscientists and is a Member of the
Australian Institute of Mining and Metallurgy. Dr Boucher has
sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves'. Dr
Boucher consents to the inclusion in the announcement of the
material based on his information in the form and context in which
it appears.
ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR's
wholly owned Australian subsidiary Mercator Gold Australia has 100%
ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor
gold exploration licences in central Victoria, Australia.
ECR has earned a 25% interest in the Danglay epithermal gold
project, an advanced exploration project located in a prolific gold
and copper mining district in the north of the Philippines. An
NI43-101 technical report was completed in respect of the Danglay
project in December 2015 and is available for download from ECR's
website.
ECR's wholly owned Argentine subsidiary Ochre Mining has 100%
ownership of the SLM gold project in La Rioja, Argentina.
Exploration at SLM has focused on identifying small tonnage
mesothermal gold deposits, which may be suitable for relatively
near-term production.
MARKET ABUSE REGULATIONS (EU) No. 596/2014
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the
publication of this announcement via Regulatory Information Service
(RIS), this inside information is now considered to be in the
public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc Tel: +44 (0)20 7929 1010
David Tang, Non-Executive Chairman
Craig Brown, Director & CEO
Email:
info@ecrminerals.com
Website:www.ecrminerals.com
WH Ireland Ltd Tel: +44 (0)161 832 2174
Nominated Adviser
Katy Mitchell/James Sinclair-Ford
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
SI Capital Ltd Tel: +44 (0)1483 413500
Broker
Nick Emerson
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such
statements may be subject to numerous known and unknown risks,
uncertainties and other factors that could cause actual results or
events to differ materially from current expectations. There can be
no assurance that such statements will prove to be accurate and
therefore actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward looking statements. Any
forward-looking statements contained herein speak only as of the
date hereof (unless stated otherwise) and, except as may be
required by applicable laws or regulations (including the AIM Rules
for Companies), the Company disclaims any obligation to update or
modify such forward-looking statements because of new information,
future events or for any other reason.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180711005299/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
July 11, 2018 04:30 ET (08:30 GMT)
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