ECR raises £1.5m to see it through exploration, development for the year
Aim-listed ECR Minerals has conditionally raised £1.5-million through a placement with institutional and other investors, for a total of 576-million new ordinary shares at a price of 0.26p apiece.
The fundraising provides the company with enough capital to acceleration its production and exploration strategy across Queensland and Victoria, in Australia.
ECR announced earlier this week that initial gold production is expected from the Raglan project at the end of the month, while development is under way at the Blue Mountain project.
The company will use the proceeds of the fundraise particularly to secure all necessary equipment for production at Blue Mountain and to conduct targeted exploration at the Lolworth project, in North Queensland.
A maiden drilling campaign on Lolworth last year confirmed intercepts of gold and silver, which represents a multi-metal opportunity for ECR.
In Victoria, ECR aims to advance exploration at the Bailieston project, where previous drilling indicated the presence of gold at shallow depths.
The ECR board says the funds from the latest placement should see the company through for all corporate and currently planned activities beyond the end of 2026.
The board expects cash flow from the Raglan project, once it is fully operational, to cover all of the company’s overheads and support bringing the Blue Mountain project into production.
“With this fundraising, our strong project pipeline and A$76-million of tax losses available to offset future production profits, we consider that ECR is now well-capitalised and positioned to develop into a significant mining and exploration company in 2026 and beyond,” confirms chairperson Nick Tulloch.
