Amendment to A$2m deferred consideration payment
Summary by AI BETAClose X
29 September 2026
ECR MINERALS PLC
(“ECR Minerals”, “ECR” or the “Company”)
ECR amends A$2 million deferred consideration payment
Payment terms now aligned with gold production as Maddens nears maiden production
ECR Minerals plc (AIM: ECR), the gold exploration and development company focused on Australia, is pleased to announce that it has agreed revised payment terms in respect of the A$2 million deferred cash consideration relating to its acquisition of a 50% interest in the Maddens Gold Project in North Queensland.
Under the original terms, as announced by the Company on 18 May 2026, the A$2 million cash consideration was payable to certain vendor shareholders of Lucky Strike Mining Ventures Pty Ltd (“Lucky Strike”) six months following completion of the acquisition and would therefore have fallen due in November 2026.
Following constructive discussions with the relevant vendor shareholders, the parties have agreed that payment of the A$2 million deferred cash consideration will instead be contingent upon ECR Minerals (Paleogold) Ltd receiving corresponding proceeds from gold production and sales from Maddens. Accordingly, there is no longer a fixed requirement for ECR to make the A$2 million cash payment in November 2026 and this payment now does not have a fixed repayment timeline.
Highlights
- Fixed A$2 million cash payment previously due in November 2026 amended, with payment now aligned to proceeds from gold production and sales at Maddens.
- Revised structure provides ECR with significantly increased financial flexibility and aligns payment structure to the production timetable.
- Underground development at Maddens is well advanced, with drilling and blasting on the main decline having been underway for several weeks and delivering encouraging outcomes.
- Maiden production at Maddens is now expected shortly, with material already stockpiled on surface for processing.
- Recent underground development has identified Jack’s Reef, a newly recognised visibly gold-bearing quartz reef providing further exploration upside.
- ECR expects further operational developments from Maddens in the nearer term as underground development, processing and exploration activity continue.
Maddens Operational Progress
The revised payment structure comes at an exciting stage in the development of Maddens.
Development drilling and blasting on the main decline has now been underway for several weeks and is well advanced, delivering encouraging outcomes as the mine progresses towards maiden production. This follows significant work already completed on mine ventilation, underground safety and access, surveying and equipment preparation.
Refurbishment and preparation of the existing processing plant have also advanced, including work associated with the installation of the 20-inch Knelson concentrator. Previous operational planning targeted first processing from existing surface stockpiles ahead of subsequent production from newly accessed underground ore.
Material generated through development is already stockpiled on surface for processing and maiden production from Maddens is now expected shortly.
Recent underground developments have also delivered the discovery of Jack’s Reef, a newly recognised visibly gold-bearing quartz reef intersected during development work. As announced on 8 September 2026, the reef presents as a substantial quartz structure, approximately 50 centimetres or more in width in places, with visible gold observed within the exposed reef.
Current geological interpretation indicates that Jack’s Reef may provide an important link between the historic Maddens workings and potential extensions of the wider mineralised system, opening up an additional exploration opportunity alongside the ongoing development of the mine.
With underground development well advanced, processing preparations progressing and Jack’s Reef adding further geological potential, the Board is increasingly encouraged by developments on the ground at Maddens and expects further operational progress in the near term.
ECR would like to thank the relevant vendor shareholders in Lucky Strike for their constructive approach and willingness to renegotiate the payment terms to better align the consideration with the development and future cash generation of the project. While ECR currently holds a 50% beneficial interest in Lucky Strike, the relevant shares in Lucky Strike will be released to ECR upon payment of the deferred consideration.
ECR Chairman Nick Tulloch commented: “This is a very positive outcome for ECR. Amending the fixed A$2 million cash payment that would otherwise have fallen due in November 2026 gives the Company significantly greater financial flexibility and, importantly, aligns the timing of the consideration with future proceeds generated from gold production at Maddens.
“The agreement also comes at a particularly exciting time for the project. Underground development has now been underway for several weeks and is well advanced, with the work delivering some very encouraging outcomes. Maiden production is now expected shortly and we expect further exciting developments from Maddens in the near term.
“The discovery of Jack’s Reef, with visible gold, has meanwhile added another potentially important dimension to what we are seeing underground. The combination of advancing development, near-term production and increasing geological opportunity gives us growing confidence in the wider potential of Maddens.
“We are grateful to the vendor shareholders concerned for their constructive approach and willingness to work with us on revised terms that better align the interests of all parties.”
Review of Announcement by Qualified Person
This announcement has been reviewed by Michael Parker, Non-Executive Director of ECR Minerals Plc. Michael Parker has a BSc. In Mining Geology and is a professional geologist and is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.
FOR FURTHER INFORMATION, PLEASE CONTACT:
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ECR Minerals Plc |
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Tel: +44 (0) 20 8080 8176 |
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Nick Tulloch, Chairman Andrew Scott, Director |
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Website: www.ecrminerals.com |
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Allenby Capital Limited |
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Tel: +44 (0) 20 3328 5656 |
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Nominated Adviser and Joint Broker Alex Brearley / Nick Naylor / Vivek Bhardwaj (Corporate Finance) Kelly Gardiner (Sales and Corporate Broking)
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CREST Corporate Broking Joint Broker Jerry Keen
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Tel: +44 (0) 20 3973 3678 |
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Axis Capital Markets Limited |
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Tel: +44 (0) 20 3026 0320 |
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Joint Broker |
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Lewis Jones |
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SI Capital Ltd |
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Tel: +44 (0) 1483 413500 |
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Joint Broker |
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Nick Emerson
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Brand Communications |
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Tel: +44 (0) 7976 431608 |
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Public & Investor Relations |
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Alan Green |
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ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company operating through four wholly owned Australian subsidiaries ECR Minerals (Australia) Pty Ltd ("ECR Australia"), ECR Minerals (Queensland) Pty Ltd ("ECR Queensland"), ECR Minerals (Raglan) Pty Ltd (“ECR Raglan”) and Paleogold Ltd (“ECR Paleogold”).
ECR Paleogold has a 50% interest in the Maddens hard rock mining project in Northern Queensland where work is underway for production this year. It also has a 20% interest in the Salt Bush shallow open cut mining project in South Australia where preparations are underway for production which is expected to commence around mid-2027. ECR Paleogold also owns 80% of the Tuckanarra exploration project in Western Australia.
ECR Australia owns the Bailieston and Creswick gold projects in central Victoria, Australia as well as the Tambo gold project in eastern Victoria.
ECR Raglan has a mining lease at the Raglan alluvial gold project in central Queensland, Australia and ECR Queensland has two approved exploration permits over the nearby Blue Mountain alluvial gold project which ECR is currently working to bring into production. ECR Queensland also has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range in northern Queensland. Furthermore, it has also submitted a licence application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), ECR Australia has the right to receive up to A$2 million in payments subject to future resource estimation or production from these projects.
ECR Australia also has approximately A$77 million of unutilised tax losses incurred during previous operations.
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