Despite terminating its earn-in option in relation to the Danglay Gold Project in the Philippines, ECR Minerals continues to monitor political developments in the country and to assert the company's rights in respect of the project.
In accordance with the terms of the earn-in and joint venture agreement between ECR, Cordillera Tiger Gold Resources, and Tiger International, ECR's directors consider it clear that the company has earned a 25% interest in the Danglay project.
ECR maintains that it has fulfilled the two necessary conditions under the agreement to earn a 25% interest in the project - estimation of a mineral resource in accordance with Canadian NI 43-101, and expenditure of more than US$500,000 on exploration.
However, Tiger International refuses to acknowledge ECR’s 25% interest in Danglay and is not engaging with ECR to discuss the future of the project. Tiger International has also criticised the adequacy of the exploration data produced by ECR as a result of the company’s past work. The directors consider these criticisms to be without basis.
In January 2017, ECR appointed legal counsel to begin the process of enforcing the company’s rights in relation to Danglay either in court or through arbitration. In parallel, the company has submitted a proposal to Tiger International to encourage an amicable resolution of the dispute.
The company also advises that notice of renewal of the Exploration Permit for a further two-year term has still not been received by Cordillera Tiger. ECR remains unaware of any reason for the application for renewal not to be granted, although there can be no guarantee that it will be granted.
The carrying value of ECR’s investment in the Danglay project in the company’s unaudited financial statements for the six months to March 31, 2016 was £1,082,000. Taking into account these matters, the directors, with advice from ECR’s auditors, are reviewing the status of the investment in the project in preparing the company’s year-end audited financial statements.
ECR's CEO Craig Brown said, “Although ECR’s operational focus remains on the Avoca and Bailieston gold projects in Victoria, Australia, and the SLM gold project in Argentina, the Danglay project with its NI 43-101 mineral resource remains a promising project.
“The mining industry in the Philippines currently faces an uncertain operating environment, however we remain hopeful that the situation may improve in future. Therefore whilst we advance ECR’s other projects, the directors are determined to protect ECR’s investment in the Danglay project and drive the project forward as far as possible.”