ECR Minerals reports keen interest in sale of Aussie tax losses

(Sharecast News) - ECR Minerals said in an update on Thursday that it remains in advanced discussions with Octo Holdings regarding the proposed sale of its wholly-owned subsidiary Mercator Gold Australia (MGA), which holds its accumulated Australian tax losses. The AIM-traded firm said the deal, announced earlier in February, would see MGA sold for AUD 4.5m (£2.26m) in cash.

In addition to its ongoing negotiations with Octo, ECR said it had seen a rise in unsolicited interest from other parties, which it attributed to increasing antimony prices and heightened demand for strategic metals.

Several new parties had joined the data room, with ECR signing additional confidentiality agreements, bringing the total to six.

While discussions with Octo were continuing toward a targeted completion date of 28 February, the agreement remained non-exclusive and non-binding, subject to due diligence and final legal documentation.

The potential disposal of MGA, which would include the Bailieston gold and antimony project, could require shareholder approval under the AIM rules.

ECR said it would provide further updates as negotiations progressed.

"While our discussions with Octo remain advanced and our priority, the increasing number of parties seeking to engage with us highlights the significant potential of these assets," said chairman Nick Tulloch.

"We believe that the pricing of antimony and heightened global demand is driving fresh attention to the Bailieston gold and antimony exploration project in Victoria.

"We remain committed to securing the best possible outcome for our shareholders."

At 1057 GMT, shares in ECR Minerals were up 1.25% at 0.28p.

Reporting by Josh White for Sharecast.com.