Business
Collaboration with Metal Tiger plc
Collaboration with Metal Tiger plc.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n\n \n \n \n Collaboration with Metal Tiger plc\n \n \n\n \n ECR Minerals plc\n \n \n\n \n \n \n ECR MINERALS plc\n \n \n (“ECR Minerals”, “ECR” or the “Company”)\n \n \n AIM: ECR\n \n \n US OTC: MTGDY\n \n \n COLLABORATION WITH METAL TIGER PLC\n \n \n LONDON: 22 JANUARY 2016 - The directors of ECR Minerals plc are \n pleased to announce a collaboration with Metal Tiger plc (“MTR”) in \n relation to ECR’s wholly owned Australian subsidiary Mercator Gold \n Australia Pty Ltd (“MGA”).\n \n \n MGA is estimated to have tax losses of approximately A$66 million as at \n 30 June 2015 (the “Tax Losses”) which may be available, subject to \n certain conditions (as described in the announcement of 4 December \n 2015), to reduce future taxable profits of MGA. MGA is therefore seeking \n a business opportunity in Australia with the capacity to generate \n profits.\n \n \n Facilitation Agreement\n \n \n Accordingly, MGA, ECR and MTR have entered into a facilitation agreement \n (the “Agreement”) which provides as follows:\n \n \n 1. In the event that MTR introduces a business opportunity to MGA and \n MGA proceeds to generate profits from such opportunity, MTR shall \n receive from MGA a fee (the “Introducer’s Fee”) equal to 25% of the tax \n which would have been payable by MGA in respect of the profits generated \n by such activity if not for the availability of some or all of the Tax \n Losses (only to apply to Tax Losses which have arisen prior to the date \n of the Agreement, and no fee to be payable in the event that none of the \n Tax Losses are ultimately available to reduce the taxable profits of \n MGA).\n \n \n 2. The Introducer’s Fee, if due, shall be payable in respect of each tax \n year at the time the relevant tax return for the year is no longer open \n for enquiry, under ordinary circumstances, by the Australian Tax Office \n (ATO). Currently, such a tax return would be open for enquiry, under \n ordinary circumstances, for four years from the date of lodgement.\n \n \n 3. Neither ECR nor MGA nor any other person:\n \n \n (a) makes any warranty or representation, nor gives any assurance \n whatsoever that the Tax Losses will ultimately be available, in whole or \n in part, to reduce any future taxable profits of MGA, nor that any \n taxable profits will in fact arise;\n \n \n (b) shall be obliged to take, or refrain from t...