ECR Minerals has raised £2m from investors to fund the company’s gold exploration projects in Australia.
The group has placed 90.9m shares at 2.2p each with investors and will use the £2m gross proceeds to increase drilling and exploration at its 100%-owned gold projects in Victoria and for working capital. ECR said it was now fully funded and would not need more equity funding “for quite some time”.
The AIM-traded company’s shares fell 7.6% to 2.38p at 10:09 GMT.
Craig Brown, ECR’s chief executive, said: “We are delighted by the tremendous show of support for ECR from investors in the placing announced today. We believe this reflects both the high degree of market interest in Victorian gold projects generally, and ECR’s success in assembling a highly prospective portfolio of projects and establishing an in-house drilling capability which is being put to full use.”
ECR said drilling with its diamond drill rig was continuing in the HR3 area of the Bailieston gold project in Victoria. Five drill holes have been completed, and a sixth hole is in progress.
The company said it expects to report assay results from initial holes later in April. Visible gold has been noted in the hole first drilled at the Byron prospect, it said.
