ECR Minerals has revealed that it could give its shareholders part of the company’s 19% stake in TSX Venture-listed THEMAC Resources.
ECR said it is aware of its shareholders’ enthusiasm for THEMAC and the Copper Flat project in New Mexico. It added that it remains open to offloading some or all of its interest in THEMAC for an acceptable cash value.
A statement from ECR read that “Presently the book value of ECR’s investment in THEMAC is substantially in excess of the company’s market capitalization.”
“By distributing some of the securities comprising the investment, it could be expected that substantively more of this value would become tangible to ECR shareholders, who would become holders of THEMAC shares and/or warrants directly.”
The company added that it is early days and that any decision would be subject to court approval, as well as requiring the go-ahead from ECR shareholders and convertible loan note holders.
If it does decide to go through with the plan, ECR will need to boost its working capital before presenting it to the court.
Meanwhile the company has offloaded its entire shareholding in West Wits Mining for AUD 170,000 to fund its ongoing activities.
THEMAC’s vice president of exploration, Mr Ray Irwin said that “We were excited to see the long continuity of reserve grade present in all four holes.”
“When combining the results from these four holes with our earlier drilling, we can clearly see that the mineralization is extending to the northeast and remains open to some degree along the deposit's major northeast trending structure.”
THEMAC added that the geotechnical report is due out this month and once this is out, the company will immediately start to optimise the pit.
