RCS - Erin Ventures Inc. - Erin Ventures Announces LOI with Strategic Partner
31/01/2023 08:00
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RNS Number : 3311O Erin Ventures Inc. 31 January 2023
Erin Ventures Announces Letter of Intent with Strategic Funding Partner
VICTORIA, BC / ACCESSWIRE / January 31, 2023 / Erin Ventures Inc. ("Erin")
(TSXV:EV), an international mineral exploration and development company, is
pleased to report that it has signed a Letter of Intent (the "LOI") with a
London based strategic investor, Osmose Limited ("Osmose") to provide equity
funding for the development of Erin's Piskanja Boron Project. In accordance
with the LOI, Osmose has agreed to provide funding which totals CAD$3,550,000
plus Euro22,000,000, in three tranches (the "Funding").
The terms of the LOI afford Osmose the exclusive right to provide the Funding,
subject to certain terms and trigger deadlines for each tranche being met by
Osmose. If, and only if Osmose fulfills the terms of each tranche, will it
retain the exclusive right to fund the following tranche. No exclusivity will
exist until Osmose completes the first tranche funding round. Erin intends on
continuing its ongoing discussions with other interested, potential strategic
partners until such time as Osmose has completed all three funding tranches.
The key terms in the LOI are:
1. Upon completion of a definitive agreement (which is based upon the
framework found in the LOI), Osmose has agreed to subscribe to a non-brokered
private placement of Erin's shares for a total of CAD$3.55million priced at
CAD$0.10 per unit, with each unit comprised of 1 common share and 1 share
purchase warrant (with an exercise price of CAD$0.22 per share, and a 2-year
expiry), as the first funding tranche. Osmose undertakes to exercise the
warrants, if and only if, in doing so, Osmose remains below 19.9% ownership of
Erin. Use of proceeds include completion of the Piskanja Project Feasibility
Study and working capital.
2. Additionally, Osmose has agreed to provide two tranches of funding at
the project level (within Balkan Gold, Erin's wholly owned Serbian operating
company), to advance the Piskanja Project towards production, as follows:
i) Euro10,000,000 within 30 days of Erin's completion of a Serbian-compliant
feasibility study, in return for a 20% undivided interest in Balkan Gold, as
the second funding tranche. Use of proceeds include Piskanja Project
development and Balkan Gold working capital.
ii) Euro12,000,000 within 30 days of Erin's completion of mine and processing
designs and blueprints for the Piskanja Project, for an additional 25%
undivided interest in Balkan Gold, as the third and final funding tranche. Use
of proceeds include Piskanja Project development and Balkan Gold working
capital.
3. Erin remains the operator of the Piskanja Project. Osmose may name one
individual (one of five) to the board of Erin, and two individuals (two of
five) to the board of Balkan Gold, upon completion of its funding commitments.
4. A definitive agreement will be based upon the framework found in the
LOI, and will contain customary terms and conditions for a transaction of the
nature agreed between the Parties.
Tim Daniels, President of Erin stated, "We are very pleased with the
arrangement we have negotiated with Osmose. Importantly, the amount of capital
committed by Osmose is anticipated to be sufficient to fulfil the equity
component of the project development funding needs, through to completion of
the project". Tim Daniels continued to add, "Besides capital, Osmose brings
certain business skill sets to the partnership which will be very useful to
the development of Piskanja. For example, they have extensive business
contacts in Europe and will assist Erin with potential boron off-takers there.
As well, they have offered their expertise in sourcing, negotiating and
vetting debt financing for the Piskanja Project. Additionally, they have an
existing presence, contacts and influence within Serbia which will be most
helpful".
MMG Capital Ltd acted as the sole advisor to Erin on this transaction.
Completion of this transaction is subject to several conditions, including,
but not limited to, Exchange acceptance.
About the Piskanja Boron Project
Piskanja is Erin's wholly owned boron deposit with a Measured Mineral Resource
of 1.39 million tonnes (averaging 35.59% B(2)O(3)), an Indicated Mineral
Resource of 5.48 million tonnes (averaging 34.05% B(2)O(3)), and an Inferred
Mineral Resource of 284.7 thousand tonnes (averaging 39.59% B(2)O(3)),
calculated in accordance with the Canadian Institute of Mining Definition
Standards on Mineral Resources and Reserves (CIM Standards), as disclosed in
Erin's report titled, "Technical Report and Preliminary Economic Assessment
For The Piskanja Borate Project, Serbia, June 24, 2022". The responsible
person for the PEA and the Mineral Resource Estimate contained within, is
Prof. Miodrag Banješević PhD. P.Geo, EurGeol, a Qualified Person in
accordance with the CIM Definition Standards on Mineral Resources and Reserves
(CIM Standards), and independent of Erin Ventures.
On behalf of the Board of Directors,
Tim Daniels
About Erin Ventures
Erin Ventures Inc. is an international mineral exploration and development
company with boron assets in Serbia. Headquartered in Victoria, B.C., Canada,
Erin's shares are traded on the TSX Venture Exchange under the symbol "EV".
For detailed information please see Erin's website at www.erinventures.com
(https://pr.report/Jn2MN4A7) or the Company's filed documents at www.sedar.com
(https://pr.report/kpFNMIgG) .
For further information, please contact:
Blake Fallis, General Manager
Phone: 1-250- 384-1999 or 1-888-289-3746
info@erinventures.com (mailto:info@erinventures.com)
www.erinventures.com (https://pr.report/C-KaAnyB)
Erin's Public Quotations
Canada:
TSX Venture: EV
Europe:
Berlin: EKV
Qualified Persons
James Wallis, M.Sc. (Eng), P. Eng., a Director of Erin Ventures, and Nenad
Rakic, EurGeol, Piskanja Project Field Manager, are qualified persons as
defined by NI 43-101, have reviewed the technical information that forms the
basis for this news release, and have approved the disclosure herein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
For Erin Ventures Inc. Investors
Certain statements made in this press release that are not based on historical
information are forward-looking statements that involve substantial known and
unknown risks and uncertainties. This press release contains express or
implied forward-looking statements relating to, among other things, Erin
Ventures' expectations concerning management's plans, objectives and
strategies, including its plans for advancing the Company's Piskanja Project
through to an exploitation license. These statements are neither promises nor
guarantees but are subject to a variety of risks and uncertainties, many of
which are beyond our control, and which could cause actual results to differ
materially from those contemplated in these forward-looking statements.
Existing and prospective investors are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date hereof.
Factors that could cause actual results to differ materially from any
forward-looking statement include, but are not limited to, failure to convert
estimated mineral resources to reserves, capital and operating costs varying
significantly from estimates, the preliminary nature of metallurgical test
results, delays in obtaining or failures to obtain required governmental,
environmental or other project approvals, political risks, uncertainties
relating to the availability and costs of financing needed in the future,
changes in equity markets, inflation, changes in exchange rates, fluctuations
in commodity prices, delays in the development of projects and the other risks
involved in the mineral exploration and development industry.
Erin Ventures Inc. undertakes no obligation to update or revise the
information contained in this press release, whether as a result of new
information, future events or circumstances or otherwise except as expressly
required by applicable securities law. Further information regarding the
uncertainties and risks can be found in the disclosure documents filed by Erin
Ventures with the securities regulatory authorities, available at
www.sedar.com. These and other factors made in public disclosures and filings
by the Company should be considered carefully.
Mineral resources are not mineral reserves and do not have demonstrated
economic viability. "Inferred Resources" have a great amount of uncertainty as
to their existence, and economic and legal feasibility. Investors are
cautioned not to assume that all or any part of an inferred mineral resource
reported in this news release will ever be upgraded to a higher category or to
reserves. U.S. persons are advised that while mineral resources are recognized
under Canadian regulations, the U.S. Securities and Exchange Commission does
not recognize them. U.S. persons are also cautioned not to assume that all or
any part of an inferred mineral resource is economically or legally mineable.
SOURCE: Erin Ventures Inc.
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