Wednesday 23 August 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares

ECR Minerals - another small delay in Chinese dosh arriving, but still a buy

By HotStockRockets | Thursday 4 May 2017

Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Back on 27 February, ECR Minerals (ECR) announced that Shenyang Xinliaoan Machinery Co Ltd was to invest £553,564 at 1p. The cash has still not arrived.

This is the second delay but to keep the deal going the Chinese have advanced another £50,000 non-refundable deposit to ECR (making it £200,000 in total). If the monies don't by arrive by May 16 that £200,000 will be converted into ECR shares at 2p.

ECR says that although Shenyang has received an Overseas Investment Permit from the Provincial Bureau of Commerce in respect of the remittance to the company of the balance of the gross proceeds, this remains subject to foreign exchange controls, due to which the investor has not yet been able to complete the remittance. Whatever.

The fact that another £50,000 has been ponied up suggests the Chinese are serious. On the ground, ECR is doing the right things and there is no cash crisis to change that. The shares are now 1.65p-1.8p (we tipped them at a 1.7p offer) and we expect this matter to be concluded soon and that this and on the ground news will drive a material re-rate. Buy at this price - the target to sell is 2.5p.

This article first appeared on HotStockRockets - it's always paying customers first. To catch the next red hot share tip from the HotStockRockets team out shortly for just £5 click HERE

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on ECR


Comments are turned off for this article.

Site by Everywhen