Eros Resources Announces Agreement with Lincoln Gold Mining to Sell Bell Mountain Project
Eros Resources Announces Agreement with
Lincoln Gold Mining to Sell Bell Mountain
Project
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER, BC
,
Nov. 12, 2023
/CNW/ -
Eros Resources Corp. ("Eros")
(TSXV: ERC) and Bell
Mountain Exploration Corp. ("BMEC" and together with Eros, the "Company"), a wholly-owned
subsidiary of Eros, reports that it has entered into an agreement with Lincoln Gold Mining Inc.
("Lincoln" or the "Byer") (TSXV: LMG) and Lincoln Resource Group Corp., a wholly-owned
subsidiary of the Company, to sell all of the assets that comprise the Bell Mountain project (the
"Project" or "Bell Mountain") located in
Churchill County, Nevada
(the "Transaction").
Transaction Terms
Under the terms of the purchase agreement,
Lincoln
has agreed to issue to either BMEC or Eros, as
directed by Eros, (a) 3,000,000 common shares in the capital of the Company ("Shares") on the
closing date of the Transaction (the "Closing Date"), and (b) 1,500,000 Shares within five business
days of the date on which
Lincoln
completes any issuance of Shares, the result of which is that there
are at least 28,500,000 Shares issued and outstanding. Following the Closing Date, one of Eros or
BMEC will be an insider of the Company.
Lincoln Resource Group Corp. will also grant to BMEC a net profits interest of 7.5% of the net
returns from gold and silver produced or extracted from the Project up to a maximum amount of
US$2,000,000
. No finder's fees will be paid in connection with the Transaction.
"How best to move the Bell Mountain Project forward has beena key focus of the Company for
some time and the strategic impact of this transaction has been meticulously considered. As a part
of the proposed transaction,
Lincoln
assumes responsibility for the entirety of the capital required
to initiate production at Bell Mountain, which materially reduces the financial and dilutive strain on
Eros and allows the company to continue focusing on trading within its marketable securities
portfolio. This deliberate allocation of funds highlights Eros' commitment to judicious resource
management and its emphasis on creating value for its shareholders."
commented
Andrew
Davidson
, CFO of Eros
The closing of the Transaction remains subject to the satisfaction of customary closing conditions for
a transaction of such nature, including acceptance by the TSX Venture Exchange (the "Exchange").
The Transaction will be an arm's length transaction under Exchange policies.
"The leadership team at Eros is enthusiastic about the potential of this strategic initiative, confident
that the shift to a holding company structure and the partnership with
Lincoln
will open up fresh
avenues for growth, ultimately strengthening the company's standing in the mining sector."
further
added
Ronald Netolitzky
, CEO of the Company.
About Bell Mountain Project
The Project is located in
Churchill County, Nevada
, approximately a three hour drive south-east from
Reno
. Bell Mountain has excellent access and is in a mining friendly county.
Lincoln
is very familiar with the Project as it was part of
Lincoln's
group of projects several years
ago, until it was optioned and sold to Eros. The Project is made up of 174 unpatented lode claims
and is under the jurisdictions of the Bureau of Land Management and the
State of Nevada
. Bell
Mountain is 100% controlled by Eros and has a gold and silver resource. The Project has all major
permits in place to advance it through construction and into operations.
Bell Mountain is only a two hour drive from
Lincoln's
Pine Grove
project, located in
Lyon County,
Nevada
. The properties are close enough in distance so that one team of management, engineering,
environmental, cultural, and administrative personnel could operate both properties and one recovery
plant could handle both projects. Both projects are advanced-stage gold exploration projects with
established resources and both projects have significant exploration potential. All these factors will
help reduce overall capital and operating costs and will make for an exciting operating plan. For
further details on Bell Mountain, please see the Company's website at
https://www.erosresourcescorp.com/active-projects
.
.
About
Lincoln
Lincoln Gold Mining Inc. is an advanced-stage gold mine exploration and development company
holding a 100% interest in the Pine Grove Gold Project, in the Walker Lane structural zone of
western
Nevada
. The Company has prepared a preliminary economic assessment of the Pine Grove
Gold Project pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Lincoln
holds its interests in the US projects through its wholly owned subsidiaries,Lincoln Resource
Group Corp. and Lincoln Gold US Corporation, both
Nevada
corporations.
About Eros
Eros Resources Corp. is a Canadian public company listed on the Toronto Venture Exchange. The
Company's business objective is the identification, acquisition, and exploration of advanced-stage
projects with a North American focus. In addition, the Company plans to make strategic investments
with a global focus on a diverse commodity base. Eros management's expertise supports this
strategy.
Forward Looking Statements
This release includes forward-looking statements regarding EROS and its business. Such
statements are based on the current expectations and views of future events of EROS's
management. In some cases the forward-looking statements can be identified by words or phrases
such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the
negative of these terms, or other similar expressions intended to identify forward looking
statements. The forward-looking events and circumstances discussed in this release may not
occur and could differ materially as a result of the failure to complete the amendment of the
Warrants, known and unknown risk factors and uncertainties affecting EROS, including risks
regarding the resource industry, economic factors and the equity markets generally and many
other factors beyond the control of EROS. No forward-looking statement can be guaranteed.
Forward-looking statements and information by their nature are based on assumptions and involve
known and unknown risks, uncertainties and other factors which may cause our actual results,
performance or achievements, or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statement or
information. Accordingly, readers should not place undue reliance on any forward-looking
statements or information. Forward-looking statements speak only as of the date on which they are
made and EROS undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events, or otherwise, except as required
by applicable securities laws.
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.
SOURCE
Eros Resources Corp.
View original content:
http://www.newswire.ca/en/releases/archive/November2023/12/c2710.html
%SEDAR: 00006156E
For further information:
EROS Resources Corp., Ron Netolitzky, President and Chief Executive
Officer, Phone: 604-688-8115; EROS Resources Corp., Suite 420 - 789 West Pender Street,
Vancouver, British Columbia, Canada, V6C 1H2, T: 604-688-8115, w: www.erosresourcescorp.com;
Lubica Keighery, , VP Corporate Development, c: 778-889-5476
CO: Eros Resources Corp.
CNW 12:07e 12-NOV-23