A Question and Answer session with
ECR Minerals PLC
The TMS Team catch up with ECR Minerals Chairman Nick Tulloch and discuss Blue Mountain, Lolworth, Tambo, Mike Parker and of course…the tax losses.
Interviewer: Nick, thank you for taking the time to speak with us today. Could you please provide an overview of ECR Minerals’ recent decision to enter into an exclusivity agreement for the potential sale of Mercator Gold Australia Pty Ltd (MGA)?
Nick Tulloch: Certainly. As you are aware, we started a project to realise value from the A$75 million of tax losses within the ECR group which are held within MGA, one of our wholly owned subsidiaries in Australia. The nature of selling tax losses is that you sell the company owning the losses – the losses can’t be transferred by themselves. Since commencing this project, we have been very surprised at both the speed at which prospective buyers have investigated the opportunity, as well as the number of prospective buyers who have been in contact and signed confidentiality agreements. The decision to enter into this exclusivity agreement is the natural next stage in this process so we can concentrate our attention on one buyer and aim to bring the project to fruition in an expedient timeframe. By divesting of MGA, and therefore the tax losses, our aim is to unlock significant capital that will enable us to focus our resources on our core, high-value assets.
Interviewer: How will the potential sale of MGA impact ECR Minerals’ financial position and future growth prospects?
Nick Tulloch: The tax losses and could be worth between A$18 million and $22 million to a buyer. Although that saving will be shared between us and the buyer, it is self evident that this potential sale represents a very significant upside for ECR and could have a transformative impact on our financial position. The proceeds from the sale would provide us with the necessary liquidity to pursue promising assets, particularly in Australia (but not necessarily limited to Australia). And, in the nearer term, would allow us to accelerate exploration and development activities at our core projects, such as Blue Mountain and Lolworth, without relying heavily on external funding.
Interviewer: Could you elaborate on the recent Gekko report and its implications for ECR Minerals’ exploration plans at Blue Mountain?
Nick Tulloch: The Gekko report provided highly encouraging results, indicating excellent recovery rates for gold. This reinforces our belief in the significant potential of the Blue Mountain project. The strategic location of Blue Mountain in Central Queensland, with established mining infrastructure nearby, further enhances its attractiveness. Most importantly, the Gekko report represents independent validation for ECR not only of the presence of gold but also the ability to commercialise production. The Gekko report will enable us to refine our resource modelling and advance the project towards realising its full potential, whilst maintaining an environmentally friendly model of gravity enhancement.
Interviewer: ECR Minerals has also made some exciting discoveries at Lolworth. Can you share some insights into these findings and their implications for the project’s future?
Nick Tulloch: At Lolworth, we have identified pathfinder elements, being silver and lead, that point to the presence of gold at Gorge Creek. These findings are particularly exciting as they indicate the potential for a significant mineralised system. The presence of these pathfinder elements, which are similar to those found at nearby operations like Ravenswood and Charters Towers, reinforces our positive outlook for Lolworth. Our latest update returned collective results of 14 g/t Gold and 60 g/t Silver. With a total project area of over 900 square kilometres, we are very optimistic about the future of this project this is fast becoming one of our most significant opportunities.
Interviewer: Could you provide an update on the progress of the diamond drilling program at Tambo in Victoria?
Nick Tulloch: The diamond drilling program at Tambo is progressing according to plan and is set to be completed within budget later this week. We are pleased to report that we have encountered high readings of bismuth, which is often closely associated with gold mineralisation. Additionally, the presence of pyrite in the drill core is a further positive indicator, as it is also often associated with mineralised systems containing gold-bearing structures. We are therefore very much looking forward to the assay results, which will provide further clarity and guide for our future exploration activities in the region.
Interviewer: Looking ahead, what is ECR Minerals’ long-term vision, and how do you plan to achieve it?
Nick Tulloch: Very simply, our long-term vision is to establish ECR Minerals as a leading exploration player with a streamlined focus on high-return assets. We aim to advance select projects from exploration to production-ready stages, concentrating on Australia’s most promising areas. The recent divestment decisions, such as the potential sale of our non-core assets, are part of our strategy to create a leaner, more focused company. As investors know, we have implemented several measures over the past year to reduce operating costs and, quite literally, spend more of our funds in the ground. We are confident that this disciplined approach will position us well as we advance our projects.
Interviewer: How do you see ECR Minerals’ competitive position evolving in the Australian mining sector?
Nick Tulloch: Australia’s mining sector is of course highly competitive, but we believe that our lean operating structure and disciplined focus give us a strong competitive edge. By concentrating on our high-potential assets like Blue Mountain and Lolworth, supported by funds from recent and perhaps ongoing divestments, we are creating a strategic and diverse portfolio. This approach not only differentiates ECR Minerals from its peers but also supports our goal of delivering substantial, long-term value to our shareholders. All members of the board have in the past year been remunerated to a large extent in ECR shares. As a result, we are fully aligned with shareholders and incentivised to deliver market-beating share price returns.
Interviewer: In recent months, you appointed Mike Parker, formerly with First Quantum, to ECR’s technical team. Could you share what he brings to ECR?
Nick Tulloch: Mike Parker’s appointment has been a tremendous asset to ECR. His career with First Quantum and other industry leaders speaks for itself and is testament to his deep expertise and understanding of mineral exploration and development. Mike brings a level of technical rigour and strategic insight that is invaluable as we advance our projects. His experience with major international projects strengthens our team’s capabilities, and his insights are helping to sharpen our exploration focus. He has been instrumental in refining our geological understanding, adding real depth to our technical approach.
With transformational news recently and sellers exhausted, are ECR now moving to a new level ask @TMSreach
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A transformational path towards commercialisation as Nick Tulloch explains in this interview
