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ECR Minerals PLC on Friday reported positive due diligence results for its planned acquisition target in Queensland. The Australia-focused gold exploration and development company on Wednesday entered an exclusivity period for its proposal to buy the Raglan project, which is near ECR’s existing Blue Mountain site. ECR has agreed to a cash consideration of A$1.1 million, around £530,000, plus applicable taxes. ‘With a mining licence and all capital equipment included in the proposed acquisition, the directors believe that the Raglan project represents an opportunity to fast-track ECR’s alluvial gold production plans,’ the company said. Mining at Raglan so far has been largely small-scale, ECR noted, though it has historically produced course gold nuggets. Raglan has a 300-acre mining lease and ‘turnkey’ infrastructure, giving it ‘nearer-term revenue potential,’ ECR added. Following due diligence visits which began on September 29, the company estimated ‘that the second hand value of this equipment alone may be near to the A$1.1 million purchase price.’ The firm also noted bulk sampling which suggested gold grades consistent with Blue Mountain. Following the successful due diligence outcome, ECR said it will finalise the deal and already planning a initial mining campaign. It is making the purchase through its subsidiary ECR Minerals Queensland Pty Ltd. The seller is Raglan Resources Pty Ltd, which owns Raglan Mining Pty Ltd, and booked A$1.39 in total assets at the end of June, with a net loss of A$190,000 in the year that ended June 30. ECR expects to apply its existing tax losses of A$75 million against future Raglan profits. In parallel with the proposal, ECR said it has conditionally raised £650,000 million via a placing of 325 million shares at 0.20 pence. In addition, it has proposed a retail offer to raise around £100,000, and appointed Allenby Capital Limited as joint broker. The deal remains subject to completing the retail offer. The placing and retail shares are expected to be admitted to trading on October 8. ECR Chair Nick Tulloch commented: ‘This proposed acquisition underpins our strategy to build a pipeline of lower-capex, higher-margin producing gold assets. We believe that 2026 is shaping up to be a transformative year for ECR and the completion of the proposed acquisition offers the potential for nearer-term cashflow as we advance the scale of our operations.’ ECR shares rose 3.7% to 0.22 pence on Friday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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