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(Sharecast News) - ECR Minerals announced the conditional acceptance of an offer worth AUD 0.23m (0.12m) for the sale of surplus land at Brewing Lane, Springmount, in the Australian state of Victoria on Thursday.
The AIM-traded firm said the offer, which was subject to the purchaser securing financing, was expected to be finalised within 14 days, after which the land conveyancing process would start.
It said the sale was structured as a private transaction, meaning ECR would not incur real estate agent fees or commissions.
The 20-acre property, located within ECR's Creswick licence area, would be sold without affecting the company's mineral rights or its future exploration activities at Creswick.
Previously, ECR had explored options to secure planning permission for residential development on the land and considered upgrading access rights.
With the proposed sale, the company would forgo those initiatives, saving both costs and management resources.
Proceeds from the sale, if completed, would be directed toward advancing ECR's near-term exploration and operational projects.
"The proposed sale of our surplus land at Brewing Lane is the culmination of our strategy to realise value from assets within ECR that we are not using or do not require," said chairman Nick Tulloch.
"The agreement in principle represents a very cost-effective exit for ECR, with no agency commissions and would negate the need for us to carry out work on the property before the sale."
Tulloch said the proceeds of the sale would be immediately reinvested in the company's near-term exploration and operational activities, in line with its objective to advance the value of its assets as efficiently as possible.
"As we continue to drive growth within the business, the Board is excited about the potentially significant opportunities presented by our assets in Victoria and Queensland."
At 1541 GMT, shares in ECR Minerals were down 2.07% at 0.42p.
Reporting by Josh White for Sharecast.com.