ECR Minerals Lines Up Potential Offtake Partner and Highlights Higher Raglan Asset Value

ECR Minerals (LSE:ECR) said it has identified a prospective offtake partner for gold production from its Raglan alluvial gold project in Queensland and is now advancing formal agreements. The board expects documentation to be completed within the coming month, which it believes would establish a clear route to market for Raglan’s planned gold output, while noting that final terms and timing are not yet guaranteed.

Alongside this progress, the company disclosed the results of an internal insurance assessment that values the replacement cost of Raglan’s plant, equipment and associated infrastructure at approximately A$1.9m. This figure is materially higher than the original acquisition cost, which management views as external validation of the quality of the facilities and the attractiveness of the transaction. With an experienced operational team in place, a 300-acre mining lease secured and commercial arrangements continuing to advance, ECR believes Raglan is well positioned to move into production and generate early cash flow.

Management said initial production at Raglan is expected to support the wider development of the group’s Queensland gold portfolio, providing a potential funding base for further growth. However, the company reiterated that there is no certainty the proposed offtake agreement will be concluded on the anticipated timetable or on acceptable commercial terms.

More about ECR Minerals

ECR Minerals PLC is a mineral exploration and development company focused on gold assets in Australia. The group operates through wholly owned subsidiaries covering Victoria and Queensland, with projects including Bailieston, Creswick and Tambo in Victoria, and the Raglan and Blue Mountain alluvial gold projects in Queensland. Its broader portfolio also includes exploration ground in the Lolworth Range, a licence application at Kondaparinga in the Hodgkinson Gold Province, contingent payment rights of up to A$2m from previously sold Victorian assets, and significant unutilised tax losses from prior operations.