ECR Minerals gets its £0.55m from Shenyang

ECR Minerals announced on Wednesday that it had now received the full amount of the gross proceeds of its subscription by the Shenyang Zinliaoan Machinery Company, totalling £553,564.

The AIM-traded firm had initially announced the subscription and its associated issue of warrants and equity on 27 February.

“Completion of the subscription and the issue of the subscription shares and associated investor warrants remains conditional upon the relevant parties entering into a relationship agreement,” the ECR board cautioned.

“A further announcement will be issued regarding completion of the subscription in due course.”

At the time of the initial announcement, ECR said Shenyang had agreed to subscribe for a 29.9% shareholding in the company, with its subscription shares subject to a 12-month lockup.

“One of the principal challenges faced by companies such as ECR is in securing investors who are prepared to take a longer term view,” CEO Craig Brown said at the time.

“We believe the fact that the investor has agreed to a 12-month lock up with respect to the subscription shares speaks volumes in this regard, and is a real vote of confidence in ECR and its strategy.

“We look forward to using part of the net proceeds of the Subscription to press ahead with the planned drilling programmes at the Avoca and Bailieston projects in Australia and the SLM gold project in Argentina in due course.”