ECR Minerals (ECR ) 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, the A$2 million cash consideration was payable to certain vendor shareholders of Lucky Strike Mining Ventures six months following completion of the acquisition, and would therefore have fallen due in November 2026.
Following 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 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.
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.
Refurbishment and preparation of the existing processing plant has also advanced, including work associated with the installation of the 20-inch Knelson concentrator.
Recent underground developments have also delivered the discovery of Jack’s Reef, a newly recognised visibly gold-bearing quartz reef intersected during development work.
“This is a very positive outcome for ECR,” said ECR chairman Nick Tulloch.
“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.”
View from Vox
It looks as though ECR is about to become a serious, if small-scale, producer of gold. Material generated through development is already stockpiled on surface for processing and maiden production from Maddens is now expected shortly. This is welcome news, and could be transformative for the company. It also means that the A$2 million payment, though deferred, will be covered, and that the company can proceed on a sound financial footing.