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ECR Minerals PLC (LON:ECR) has announced the sale of its Argentine subsidiary Ochre Mining, which owns the SLM gold project, to Chinese group Hanaq Argentina.

The AIM-quoted firm will retain a net smelter royalty (NSR) on future production of up to 2%, to a maximum of US$2.7mln.

ECR noted that the transaction will allow it to focus on core gold exploration activities in Australia.

READ: ECR sees “significant upside” at Creswick gold project

“We are pleased to retain exposure to potential upside from the SLM gold project in the form of a royalty on future production, and we believe that Hanaq has the operational capabilities and access to Chinese investment capital necessary to put the SLM project into production, subject to the usual prerequisites,” said Craig Brown, ECR’s chief executive.

“Moreover, the transaction enables ECR to concentrate its resources on our core gold exploration activities in Australia,” he added.