Erin Ventures Announces Letter of Intent with Strategic Funding Partner
1
ERIN VENTURES INC.
NEWS RELEASE – for immediate release
Erin Ventures Announces Letter of Intent
with Strategic Funding Partner
January 31, 2023
Victoria, BC /Accesswire/
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 m ine 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.
2
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% B2O3), an Indicated Mineral Resource of 5.48 million tonnes (averaging 34.05% B2O3), and
an Inferred Mineral Resource of 284.7 thousand tonnes (averaging 39.59% B2O3), 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 Assessme nt 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 Sta ndards 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 pl ease see Erin's website at www.erinventures.com or the Company's filed
documents at www.sedar.com.
For further information, please contact: Erin’s Public Quotations
Blake Fallis, General Manager Canada:
Phone: 1-250- 384-1999 or 1-888-289-3746 TSX Venture: EV
[email protected] Europe:
www.erinventures.com 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 poli cies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
3
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 sta tements 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 li mited 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 infor mation 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 Compa ny 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.