LONDON, UK: Lux Exploration, subsidiary of ECR Minerals plc (LON: ECR), has entered into a conditional agreement to acquire 100% interest in the Blue Mountain Project, Queensland, Australia, which also includes the Denny Gully Gold project.
The total consideration under the agreement is GBP 200,000 which is to be settled by the issue of 31,913,196 ordinary shares at a price of 0.6267p (being the 30-day VWAP prior to the date of the Agreement), if the condition precedent is satisfied.
The proposed acquisition is conditional upon ECR Minerals obtaining Australian Ministerial approval for the transfer of the tenements comprising the Blue Mountain Project.
The Blue Mountain project consists of exploration permits EPM 27175 and EPM 27183, situated some 95 kilometres south southwest of the Gladstone port and industrial complex and, more specifically, lies about 35 kilometres southeast of Biloela, the small regional pastoral- agricultural-coal mining centre in Queensland (see Figure 1 below).
Based on reports from previous explorers, the directors believe that there is significant nascent potential at the project.
ECR CEO Andrew Haythorpe commented: “In laying out our vision for ECR in the strategy presentations in 2022, the Board were clear that ECR would not only examine and consider potentially accretive acquisitions, but that we would also shortlist projects enabling us to maximise logistical efficiencies in regard to our areas of operation.”
“The Blue Mountain marks our third and most southerly project in Queensland. The Board is of the opinion that with our extensive Queensland knowledge and experience we believe the project can be explored for the primary (hard rock) source of the gold in the coming months. We look forward to getting on the ground at Blue Mountain and Denny Gully and reporting back as soon as possible.”
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