ECR Minerals undertakes placing to raise 450,000 pounds

12th Jun 2013 08:51

AIM-listed gold and base metals development company ECR Minerals has reported the placing of 450m new ordinary shares at a price of 0.1p each to raise 450,000 pounds before expenses. The company said that the combined proceeds of this placing, as well as an earlier placing announced on May 22nd 2013, would be employed to meet costs and for general corporate purposes.This included the completion of due diligence on the Itogon gold-silver project in the Philippines and the continuing communication with authorities with regard to the renewal of the exploration permit pertaining to the project for a second two-year term. The company said that the renewal should add "significant value" to ECR's rights in relation to Itogon, which it described as an advanced exploration project located in a gold and copper mining district on the island of Luzon in the north of the Philippines.The company also added that it would fund all expenditure required for Cordillera Tiger Gold Resources to obtain a mining licence and through Cordillera Tiger Gold Resources, it said it would be the operator of the project during the earn-in.ECR Minerals entered into an earn-in and joint venture agreement with Tiger International Resources and its subsidiary Cordillera Tiger Gold Resources in April with respect to the Itogon project, which is 100% owned by Cordillera Tiger Gold Resources.Stephen Clayson, Chief Executive Officer of ECR Minerals, commented: "There has occurred a tremendous volume of trading in ECR shares since the placing completed last month, which is indicative of significant market interest in the company and its ongoing renaissance. Accordingly it makes sense to have secured further funding for the company's activities via the placing announced today."He added: "ECR's due diligence with respect to the Itogon gold-silver project in the Philippines is well advanced and we remain excited by the opportunities represented by the project on a standalone basis and for consolidation within the same mining district."ECR Minerals' share price was down 6.52% to 0.11p at 09:28 on Wednesday.MF