ECR MINERALS plc
(�ECR Minerals�, �ECR� or the �Company�)
ECR
Minerals plc is pleased to provide the following strategic update and to
announce that Richard Andrew Watts, an experienced mining engineer, has been
appointed a non-executive director of the Company with effect from 22 May 2012.
Strategic Update
Having
completed the reconstitution of its board of directors, ECR wishes to clarify
its current corporate strategy, which has three key elements:
1.
Realisation of value from ECR�s core investment
positions in THEMAC Resources Group Ltd (TSX-V: MAC), West Wits Mining Ltd
(ASX: WWI) and Paniai Gold Ltd (unquoted) to the best
advantage of the Company�s shareholders. This entails detailed and constant evaluation
of ECR�s risk profile, of the potential for the value of these positions to
rise or fall over time and of opportunities for the Company to deploy capital
elsewhere.
2.
Continued exploration and development of ECR�s Sierra de las Minas gold project in La Rioja
Province, Argentina, with emphasis on the El Abra
gold prospect. The success of ECR�s exploration to date has added significant
value to the El Abra prospect and the wider project
area and it is expected that further value will be added by the planned
structural study and geochemical sampling at El Abra.
Based on the results of the recently completed first drilling programme at El Abra and subject
to positive results from further exploration, the Company�s strategy for Sierra
de las Minas of bringing a high grade, smaller
tonnage deposit into production by late 2012/early 2013 remains valid. However,
consideration of alternative means of funding continued exploration and
development, such as a joint venture or outright sale, may become appropriate as
the project proceeds.
3.
Divestment of non-core assets, principally ECR�s 70% interest in the ACS
Asia metal products business. Preparations for the disposal of this interest
are being made, however the completion of any disposal is likely to take
several months.
ECR believes that the optimum outcome for shareholders will be derived from the
combination of these three strategic elements. In addition, the Company has
recently taken and will continue to take actions to materially reduce the level
of its corporate overheads, including in relation to its newly reconstituted
board of directors, the overall costs of which are substantially below previous
levels.
Appointment of Non-Executive Director
Richard
Andrew (Dick) Watts (age 67) is currently a Principal Mining Consultant for Turgis Consulting and was formerly also a Principal Mining
Consultant for SRK UK. In addition, Mr Watts has held
a variety of senior operational roles on gold, copper and coal mines in Africa
(South Africa and Zambia), Russia and Central Asia
(Kazakhstan and Uzbekistan).
Specifically
these roles have included Chief Operating Officer of Trans-Siberian Gold with
responsibility for the development of a remote underground gold project in far
eastern Russia; General Director of the Amantaytau
Goldfields project in Uzbekistan for Oxus Gold during the feasibility,
construction, commissioning and initial production stages; and General Manager
of several South African coal mines for Anglo American.
Mr Watts is a fellow of the South African
Institute of Mining & Metallurgy and holds a B.Eng
(Mining) from the University of Sheffield along with a Mine Manager�s
Certificate (South Africa) and a First Class Certificate of Competency (UK mine
manager�s qualification).
Save
for above and below and pursuant to Rule 17, Schedule Two (g) of the AIM Rules,
the following information is disclosed in respect of Mr
Watts.
Current
appointments:
R
& R Watts Ltd