M&A

Fosterville South picks up three more projects

NEWLY listed Fosterville South Exploration has agreed to acquire three Victorian gold projects from AIM-listed ECR Minerals.

Staff reporter
Fosterville South has six projects, mostly around Bendigo in central Victoria

Fosterville South has six projects, mostly around Bendigo in central Victoria

Fosterville South can acquire 100% of the Timor, Avoca and Moormbool projects, which cover a combined 271sq.km in central Victoria and have the potential for Fosterville-style mineralisation.

The Avoca and Timor projects have produced a combined 1.39 million ounces of gold, including 208,000oz at 13 grams per tonne at Timor.

Fosterville South will pay A$500,000 to ECR for 100% of the projects, as well as $1 per ounce of gold in resource, up to a maximum $1 million.

If commercial production is reached, Fosterville South will pay $1 for every ounce produced, capped at $1 million.

FliteGold, a company controlled by Fosterville South chief operating officer Rex Motton, holds a royalty over the Avoca project, which will be cancelled via the issue of 225,000 shares to FliteGold.

ECR CEO Craig Brown described the projects as non-core but high-potential.

"We believe Fosterville South is well placed to advance the licences with its strong local exploration team and backing from North American high-net worth and institutional investors, while ECR will continue to concentrate its resources on our core projects in Victoria, Bailieston and Creswick," he said. 

"It is worth noting that other external parties are currently reviewing data on our Bailieston and Creswick gold projects with a view to potential commercial transactions, including joint venture opportunities, although there can be no guarantee that any transaction will occur."

ECR last traded at 0.8p in London, giving it a market capitalisation of £3.6 million.

Fosterville South, which counts mining entrepreneurs Eric Sprott and Ross Beaty as shareholders, listed on the TSX Venture Exchange last week, closing at C$1.08 on its first day of trade.

The stock jumped 10% overnight to $1.32.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.