Fosterville South can acquire 100% of the Timor, Avoca and Moormbool projects, which cover a combined 271sq.km in central Victoria and have the potential for Fosterville-style mineralisation.
The Avoca and Timor projects have produced a combined 1.39 million ounces of gold, including 208,000oz at 13 grams per tonne at Timor.
Fosterville South will pay A$500,000 to ECR for 100% of the projects, as well as $1 per ounce of gold in resource, up to a maximum $1 million.
If commercial production is reached, Fosterville South will pay $1 for every ounce produced, capped at $1 million.
FliteGold, a company controlled by Fosterville South chief operating officer Rex Motton, holds a royalty over the Avoca project, which will be cancelled via the issue of 225,000 shares to FliteGold.
ECR CEO Craig Brown described the projects as non-core but high-potential.
"We believe Fosterville South is well placed to advance the licences with its strong local exploration team and backing from North American high-net worth and institutional investors, while ECR will continue to concentrate its resources on our core projects in Victoria, Bailieston and Creswick," he said.
"It is worth noting that other external parties are currently reviewing data on our Bailieston and Creswick gold projects with a view to potential commercial transactions, including joint venture opportunities, although there can be no guarantee that any transaction will occur."
ECR last traded at 0.8p in London, giving it a market capitalisation of £3.6 million.
Fosterville South, which counts mining entrepreneurs Eric Sprott and Ross Beaty as shareholders, listed on the TSX Venture Exchange last week, closing at C$1.08 on its first day of trade.
The stock jumped 10% overnight to $1.32.
