ECR identifies Raglan offtake partner
Aim-listed ECR Minerals says it has identified a proposed offtake partner for production from the Raglan project in Queensland, Australia.
Formal documentation and contractual agreements are now being progressed and are expected to be finalised this month.
Further, ECR reports that it has completed an internal valuation assessment, for insurance purposes, of the plant, equipment and site infrastructure at the Raglan project. This process covered the wash plant, gold room, mobile mining fleet, power generation, camp facilities and associated infrastructure.
The replacement value, on a like-for-like basis, of the plant and equipment has been assessed at A$1.9-million, significantly exceeding the A$1.01-million consideration paid by ECR for the Raglan project.
"The fact that the replacement value is close to double what we paid reinforces the value embedded in the acquisition," says chairperson Nick Tulloch.
"The insurance valuation of the inventory, plant and equipment has been equally encouraging. Having visited the site, I have seen first-hand the high quality of the operations and equipment.
"Together, these developments further de-risk the Raglan project at exactly the right time. Despite recent volatility, gold prices remain at historically strong levels and with all infrastructure in place and commercial arrangements moving to being finalised, we believe that the Raglan project is well positioned to deliver early cashflow and support the continued build-out of ECR's Queensland portfolio."
