Vancouver, British Columbia--(Newsfile Corp. - June 20, 2018) - Erin Ventures Inc. (TSXV: EV) has entered into a strategic partnership option agreement with a London based commodity investment specialist, referred to as "InvestCo". As InvestCo is currently engaged as an integral part of an IPO process of a substantial mining complex, Erin is unable to divulge the company's identity at this time.
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Under the terms of the Agreement, InvestCo has the right to make equity investments in two tranches, totaling US$20.135 million, with the proceeds to be used for the advancement of Erin's wholly-owned Piskanja Borate Project. Piskanja, located 250 kilometres south of Belgrade, Serbia, is in a historical mining region with good infrastructure for mining, including roads, rail, electric power, and experienced miners.
Piskanja is a high-grade boron deposit with an indicated mineral resource of 7.8 million tonnes, averaging 31 percent boron oxide, and an inferred resource of 3.4 million tonnes, averaging 28.6 percent boron oxide. For more information please refer to the NI 43-101 report on Sedar.com
For those unfamiliar with boron, it is difficult to comprehend its variety of uses in construction, manufacturing, medicine, science, microelectronics, pharmaceuticals, telecommunications, space travel, communication satellites, specialty metals, battery technology and more.
Tim Daniels, President, stated: "I am very excited by this development. This agreement provides an opportunity to significantly grow our shareholders' value by creating a funding plan which matches our development milestones, allowing for the rapid advancement of our boron project, first to a feasibility study stage, and then into mine development and construction. In addition, we are building a formidable team that combines Erin's mineral exploration and mine development expertise and extensive knowledge of Serbia, with InvestCo's marketing, logistics and finance expertise as an experienced global commodity trader that specializes in complex, niche commodities."
The agreement contains three principal commercial elements.
Initially, InvestCo will be granted an option exercisable for US$5.135 million to acquire EITHER:
1. An equity interest in Erin's wholly owned subsidiary, Balkan Gold, which holds all of Erin's rights in Piskanja; OR
2. Equity in Erin, based upon a fixed pricing formula.
In either case, the proceeds are to be used exclusively to fund a pre-agreed work program at Piskanja designed to advance the project to a definitive feasibility study stage, as well as all permitting activities through to obtaining the requisite licenses, and approvals to exploit and mine Piskanja.
Secondly, subject to completion of Option 1, InvestCo will be granted a second purchase option to acquire US$15 million worth of equity in Balkan Gold. Thirdly, subject to completion of Option 1, InvestCo, in its capacity as an experienced global commodity marketing and trading company, will provide its marketing and advisory expertise to Balkan Gold for the future sale of all borate production at Piskanja for a 3-year period.
For complete details, please refer to Erin's news release on June 19, 2018. Erin Ventures is trading at $0.17.
For more information please visit the company's website www.erinventures.com or contact Blake Fallis, General Manager, at 250-384-1999 or email email@example.com.
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