Business
Sale of SLM Gold Project
Sale of SLM Gold Project.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n\n \n \nSale of SLM Gold Project\n\nECR Minerals plc\n\n \n\n\n5 February 2020\n\n\nECR MINERALS plc\n\n\n(“ECR Minerals”, “ECR” or the “Company”)\n\n\nSALE OF SLM GOLD PROJECT\n\n\nECR Minerals plc (LON: ECR), the precious metals exploration and development company, is pleased to announce the sale of its wholly owned Argentine subsidiary Ochre Mining SA (“Ochre”), which holds the SLM gold project in La Rioja, Argentina.\n\n\nHIGHLIGHTS:\n\n\n\nECR retains an NSR royalty of up to 2% to a maximum of USD 2.7 million in respect of future production from the SLM gold project;\n\n\nThe purchaser, Hanaq Argentina SA (“Hanaq”), is a Chinese-owned company engaged in lithium, base and precious metals exploration in Northwest Argentina including Salta, Jujuy and La Rioja, with a highly experienced management team;\n\n\nThe sale allows ECR to focus on its core gold exploration activities in Australia.\n\n\n\nCraig Brown, Chief Executive Officer, commented:\n\n\n“We are pleased to retain exposure to potential upside from the SLM gold project in the form of a royalty on future production, and we believe that Hanaq has the operational capabilities and access to Chinese investment capital necessary to put the SLM project into production, subject to the usual prerequisites.\n\n\nMoreover, the transaction enables ECR to concentrate its resources on our core gold exploration activities in Australia.”\n\n\nFurther Information \n\n\nOchre’s sole asset is the SLM gold project, which comprises seven mining licences in La Rioja, Argentina. Hanaq has purchased 100% ownership of Ochre from ECR. The consideration for the acquisition is the grant to ECR of a 2% net smelter return (NSR) royalty in respect of four of the licences, and a 1% NSR royalty in respect of the other three licences. The NSR is capped at USD 2.7 million in aggregate (across all licences). This is the equivalent of approximately £2.07 million, based on 1.3031 GBP/USD exchange rate (Bloomberg closing rate 04/02/2020).\n\n\nThe directors of the Company understand that the founder and CEO of Hanaq Group, of which Hanaq Argentina SA is part, is Mr Xiaohuan (Juan) Tang, who has a substantive track record in Latin America, including responsibility for the successful permitting of the Pampa de Pongo iron ore project in Peru in his former capacity as General Manager of Jinzhao Mining P...