LONDON: ECR Minerals Plc (AIM: ECR), a gold-focused exploration and development company operating in Australia, announced Tuesday that it has entered into an exclusivity arrangement and non-binding agreement to potentially acquire the entire share capital of Maximus Minerals Ltd, a Canadian-based company.
The proposed acquisition, valued at £500,000, is contingent upon the satisfactory completion of due diligence and transaction documentation by May 31, 2025.
Maximus Minerals Ltd owns three base metal projects in Ontario, Canada, with copper, zinc, and gold showings. Additionally, Maximus holds an option to acquire a fourth property, the Cat Key Project, also located in Ontario.
If the acquisition proceeds, ECR plans to exercise the option to acquire the Cat Key Project for an additional C$600,000 (approximately £329,000).
The Cat Key Project, which spans 71.36 square kilometers across the four properties, is accessible by road year-round and is considered drill-ready, offering ECR an opportunity to progress toward a resource estimate at an economic cost. The company noted that the proposed activities on Maximus’ properties and the Cat Key Project are not expected to significantly impact ECR’s existing budget or funding requirements.
The consideration for both the acquisition and the option to acquire the Cat Key Project will be satisfied through the issuance of new ordinary shares in ECR, priced at no less than 0.33 pence per share. This price aligns with the issue price of ECR’s subscription announced on November 25, 2024. If the option is exercised, ECR will also gain C$406,245 (approximately £223,000) in exploration credits associated with the Cat Key Project.
Nick Tulloch, Chairman of ECR, emphasized the strategic importance of the acquisition, stating, “Maximus, with its three existing base metal projects and the option over the advanced high-grade gold Cat Key Project, fulfills our criteria for expansion. This acquisition will provide ECR with geographical and project diversification, extending our assets beyond Australia and gold, while leveraging our team’s expertise.”
Tulloch added that the work already conducted on Maximus’ properties offers a clear pathway for near-term operations, which can be executed within ECR’s current budget. He highlighted the Cat Key Project as a particularly promising opportunity to develop a gold resource based on historic drilling results.
Maximus Minerals Ltd, through its Canadian subsidiary Maximus Minerals Inc, holds licenses for three properties—Cavern Lake, Silver Lake, and Chapman Copper—and an option to acquire the Cat Key Project from NuVision Resources ULC. The largest shareholder of Maximus is Stirling Bridge Resources Limited.
The proposed acquisition aligns with ECR’s strategy to expand its portfolio while preserving cash resources for ongoing project development. The exclusivity period granted to ECR extends until May 31, 2025, allowing the company to finalize due diligence and complete the necessary transaction documentation.
ECR Minerals Plc continues to focus on delivering value to shareholders through strategic acquisitions and the development of its existing projects.