ECR Minerals Ventures into US Helium Exploration

ECR Minerals plc is exploring opportunities to diversify its business beyond gold exploration in Australia. The company is actively considering potential investments in producing helium assets located in the United States. This strategic move aims to expand ECR Minerals' portfolio and capitalize on the growing demand for helium, a valuable element used in various industries.

The Company's shareholders are likely aware of the growing interest in helium prospects, driven by a sustained price increase for this essential gas. With no viable natural or manufactured substitutes, helium remains critical for applications in electronics, defense, space, and medical devices. The Board believes that these strong market fundamentals will likely sustain robust pricing. The Company now possesses significant in-house knowledge of the helium sector. This expertise allows the Board to evaluate potential helium opportunities internally, reducing the need for external consultants and thereby minimizing overhead costs.

In evaluating potential helium investments, the Board will strategically prioritize assets that have recognized or historical helium production, access to existing infrastructure such as gathering systems and processing facilities, and are either: (i) already in production; (ii) capable of near-term production; or (iii) equipped to process helium. Given the established market, significant helium production, and extensive infrastructure, the US is considered the most promising location for targeting new opportunities. This approach ensures that investments are directed toward assets with immediate or near-term value, supported by a robust operational framework.

Over the past 12 months, ECR has adopted a low-cost operating structure, and if the Company expands into the helium market, this cost-efficiency principle will remain a priority. The Company plans to maintain a lean operation by outsourcing appropriately and collaborating with trusted partners, ensuring that any funds committed are focused on operational activities rather than overhead expenses. Furthermore, if new ordinary shares need to be issued to support any investment, they will not be issued at a discount to the current market price, protecting shareholder value.

Nick Tulloch, Chairman of ECR Minerals plc, emphasized that after months of streamlining the business and improving efficiency, the company is now in a strong position to explore new opportunities. He assured shareholders that any potential investments will be pursued on favorable terms, with a focus on generating significant returns. Tulloch highlighted that while finding a resource is important, true value lies in the ability to produce and sell it. This is especially true for helium, which, despite its high value, is challenging to process and transport. Therefore, ECR will prioritize assets capable of near-term production with access to essential infrastructure.