ECR Minerals buys option on Iceberg Gold Project

Precious metals exploration and development company ECR Minerals announced the signing of an agreement with Pacific Trends Resources on Friday, which it said secured an option over the Iceberg Gold Project in Western Australia.

The AIM-traded firm said the Iceberg Gold Project comprised three tenements under application, totalling 137 square kilometres of ground immediately along strike and adjacent to the Tropicana gold mine - which has around eight million ounces in gold mineral resource estimates - operated by AngloGold Ashanti and Independence Group under joint venture.

It said the project represented a portfolio of ground lying within a proterozoic belt, and within the plumridge terrane that hosted the Tropicana deposit.

ECR said proterozoic belts were usually host to known significant deposits of gold, copper, nickel and uranium.

It said an option fee of £25,000 was payable, securing a 60-day option period and comprising £10,000 cash, which was payable immediately, and £15,000 through the immediate issue of 1.5 million new ordinary shares in ECR Minerals, at a deemed price of one penny per share.

Should ECR want to exercise the option, it said it could acquire a 100% interest in the Iceberg Gold Project through a further payment of £0.225m, satisfied by way of the issue of 22.5 million new ordinary at the same deemed price.

In the event that ECR or a member of its group developed the project and entered into production, a further payment to the vendors, Pacific Trends Resources, would be payable through the issue of a further 30 million new ordinary shares, again at the deemed price of one penny per share.

ECR Minerals said it would produce a further information update for shareholders “in due course”, along with updates as its due diligence work progressed.

“The signing of this option agreement is another step forward in ECR’s campaign to become a leading Australian-focussed gold and strategic metals exploration and development company,” said chief executive officer Craig Brown in his statement to shareholders.

“Competition for project opportunities in the Proterozoic belts is increasing, particularly following recent large discoveries in the Paterson Province of Western Australia.

“There remains the potential for further multi-million ounce discoveries within this type of geology.”

Brown said given that backdrop, the ECR Minerals team was “excited” to be offered an opportunity to secure an option over the project package.

“Subject to the successful completion of our due diligence work, we look forward to moving forward with the project.

“Following its recent financing ECR is well funded and able to engage proactively on its project interests.

“Your company continues to build on these activities to deliver a broader based and refocused ECR Minerals.”