Business
Update on Potential Sale of Tax Losses
Update on Potential Sale of Tax Losses.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n\n\n13 February 2025\n \n\nECR MINERALS plc\n \n(\"ECR Minerals\", \"ECR\" or the \"Company\")\n\nUpdate on Potential Sale of Tax Losses and Confidentiality Agreements\n \nECR Minerals plc (AIM: ECR), the exploration and development company focused on gold in Australia, provides an update on ongoing discussions regarding the potential sale of its wholly-owned subsidiary, Mercator Gold Australia Pty Ltd (\"MGA\"), which holds its Australian tax losses.\n \nECR remains engaged in advanced discussions with Octo Holdings Pty Ltd (\"Octo\") regarding the proposed sale of the entire issued share capital of MGA for a total cash consideration of A$4.5 million as most recently announced on 3 February 2025. In addition to these ongoing discussions, ECR has experienced a notable increase in interest in MGA from additional parties. As announced on 23 December 2024, under the contemplated proposed disposal structure, it is anticipated that the Bailieston gold and antimony exploration project will remain in MGA and therefore would be included in a proposed disposal of MGA. The Directors believe that this heightened interest in MGA comes amid rising antimony prices in certain markets and growing global interest in the strategic importance of the metal.\n \nSeveral new parties have recently joined the data room, and the Company continues to receive unsolicited enquiries, both directly and indirectly through its advisers. Following the Company's announcement on 3 February 2025, ECR confirms that additional confidentiality agreements have been signed with two interested parties this week, bringing the total number of such agreements to six.\n \nNotwithstanding this increased interest in MGA from other parties, the Company confirms that ECR and Octo are actively working towards finalising the proposed disposal, on the basis announced on 3 February 2025, of MGA ahead of Octo's proposed target completion date of 28 February 2025.\n \nThe heads of terms between ECR and Octo are not exclusive and are not binding in relation to the terms of the proposed disposal of MGA, and that this would be subject, among other things, to due diligence by Octo and the execution of a legally binding agreement governing the transaction.\n \nWhilst there can be no guarantee as to the conclusion of any agreement for the disposal ...