Vancouver, British Columbia--(Newsfile Corp. - September 20, 2018) - Erin Ventures Inc. (TSXV: EV) (OTCBB: ERVFF) reported that its exploration license for its wholly-owned Piskanja Boron Project has been extended. In accordance with the mineral exploration laws of the Serbian Ministry of Mining and Energy, Erin has until September 18, 2020 to complete the next phase of its exploration work, with the right to a further 2-year extension beyond that date, as required.
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Additionally, the issuance of this exploration license extension has triggered a 90-day financing option of US$5.135 million, the first of two financing options, which were previously granted to a strategic partner. As the strategic partner, a London based commodity investment specialist, is currently engaged as an integral part of an IPO process of a substantial mining complex, it will be referred to as "InvestCo", as Erin is unable to divulge the company's identity at this time.
As a result, Erin is now readying plans to continue the exploration works required to advance its Piskanja Project towards feasibility, in anticipation of the financing option being exercised shortly.
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.
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. InvestCo's Tranche 1 90-day financing option has now been triggered as a result of Erin receiving the extension to its Piskanja exploration license.
This first tranche grants InvestCo the right, for US$5.135 million, to purchase either:
1. 51% of the equity of 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 Option 2 which allows InvestCo the right, for US$15 million, to purchase an additional 24% equity in Balkan Gold. For complete details, please refer to Erin's news release on June 19, 2018.
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. As there are very few substitutes for borates especially in high-end applications and agriculture, these markets are expected to grow as global population grows and becomes more affluent. With commercial deposits of boron extremely rare — only 2 regions containing 80% of the world supply — this lack of competition in supply helps keep prices very stable.
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