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.
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