ECR Minerals PLC has appointed Argonaut PCF Ltd to assist in realizing the value from A$75 million of tax losses through the potential sale of certain Victorian assets. The tax losses, held within Mercator Gold Australia Pty. Ltd, were incurred since 2006 and predominantly relate to gold exploration activities in Western Australia and Victoria. The company's tax losses could have a theoretical value to a prospective buyer in the range of approximately A$18 - 22 million, considering current tax rates for companies in Australia. However, the actual valuation will depend on various factors, and there is no guarantee that any offer will be received by ECR.

Nick Tulloch, Chairman of ECR, expressed the potential significance of the tax losses to the company and highlighted the specialist and relatively small market for transferring tax losses. The company has engaged Argonaut to extend its market reach and deliver its offering directly to key decision-makers of companies with operations in Australia. ECR has also put plans in place to ensure that its valuable Victorian projects are removed from MGA, in anticipation of a transaction, while still being retained within the Group.

In addition to the tax losses realization, ECR Minerals announced the discovery of Antimony (Sb) in diamond core samples from the Bailieston Project in Central Victoria, Australia. The samples returned promising results, with some grading as high as 32% Sb. Antimony is classified as a critical mineral by the Australian Government and other major economies, and its prices have soared to record highs in 2024. The Bailieston Goldfield, part of the Costerfield-Nagambie Geological Zone, is known for its Antimony deposits and active mining.

The decision to reanalyze diamond core samples for Antimony was made due to the Melbourne Geological Zone's reputation as a prominent host for Antimony lodes and the increasing demand for the critical mineral. The Costerfield Mine, owned by Mandalay Resources, and Nagambie Resources have been significant Antimony producers in the region, further highlighting the potential of Antimony exploration in Victoria. ECR remains fully funded for its planned operations in Queensland and Victoria in 2024.

Overall, ECR Minerals PLC's engagement with Argonaut to realize tax losses and the discovery of Antimony in the Bailieston Project represent significant developments for the company's operations in Australia.