Highlights

  • ECR Minerals signs binding agreement to acquire the fully permitted Raglan alluvial gold project in Queensland.
  • The acquisition includes a granted mining lease and operational processing infrastructure.
  • The project allows for nearer-term production and potential operational alignment with Blue Mountain.

ECR Minerals plc (LSE:ECR), a gold exploration and development company with operations focused on Australia, has entered into a legally binding sale and purchase agreement to acquire Raglan Resources Pty Ltd. Raglan Resources owns Mining Lease ML 3665, known as the Raglan Gold Project, located in Queensland, Australia. The agreed consideration for the transaction is AUD 1.01 million, which will be funded from ECR’s existing cash resources.

The acquisition is being completed through ECR’s wholly owned subsidiary, ECR Minerals (Queensland) Pty Ltd, which has entered into the agreement with Fire Creek Mining Pty Ltd and HIG20 Pty Ltd, the current shareholders of Raglan Resources. Completion is expected to occur before the end of 2025, subject to a limited number of administrative conditions.

Project Location and Mining Lease
The Raglan Project is situated approximately 40 minutes west of Gladstone, Queensland, with access to established infrastructure and mechanical services. The granted mining lease covers around 300 acres and includes approximately 2.9 kilometres of main creek systems. Historical operations at Raglan have identified coarse, nuggety gold, with recoveries recorded from both shallow gravels and deeper bedrock material.

Mining activity to date has been relatively small scale, and several areas and depth intervals within the lease remain untested, according to information disclosed by the company.

Processing Plant and Equipment
The acquisition includes a 60 tonnes-per-hour gravity wash plant incorporating a jig and concentrator, a gold room, generators, mobile mining equipment, and camp facilities. ECR estimates that the second-hand value of the plant and equipment is broadly in line with the AUD 1.01 million purchase consideration.

The company has indicated that the equipment may also be redeployed to other Queensland assets, including the Blue Mountain project, at a later stage, subject to operational planning.

Operating Cost Parameters
ECR has disclosed that estimated operating costs at the Raglan Project, including diesel and personnel, are expected to be around AUD 3,000 per day. At prevailing gold prices, this would require production of approximately 0.6 ounces of gold per day to cover overhead costs, based on company estimates.

Acquisition Structure and Tax Position
Prior to completion, Raglan Resources will be restructured so that non-core tenements and assets are excluded from the transaction. The company will be acquired on a cash-free and debt-free basis, except for an assumed mining lease bond of approximately AUD 13,900 payable to the State of Queensland.

ECR has stated that its existing tax losses of approximately AUD 75 million, together with AUD 1.2 million of tax losses within Raglan Resources, are expected to be available to offset future profits, subject to applicable regulations.

Next Steps
Following completion, ECR plans to commence production activities at the Raglan Project in the new year, with preparatory work already underway. The company has indicated that Raglan is intended to support broader operational activities across its Queensland portfolio, including at Blue Mountain.

Share Price Snapshot
ECR was trading 19.05% higher at GBX 0.25 per share as of 18 December 2025.