Eros Resources Corp. Announces Closing of a Highly Successful, Fully Subscribed Rights Offering
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
NEWS RELEASE
August 12, 2020
EROS RESOURCES CORP. ANNOUNCES CLOSING OF A HIGHLY SUCCESSFUL,
FULLY SUBSCRIBED RIGHTS OFFERING
VANCOUVER,
B.C.
August
12,
2020
–
EROS
Resources
Corp.
(“
EROS
”
or
the
“
Company
”)
(TSXV:
ERC)
is
pleased
to
announce
the
closing
of
its
previously
announced
rights
offering
(the
“
Rights
Offering
”)
for
aggregate gross proceeds of $2,422,344.35.
The net proceeds of the Rights Offering will be used;
➢
To
make
strategic
tax
advantaged
investments
that
will
grow
the
value
of
our
asset
portfolio
while
reducing future income tax liabilities
➢
To maintain and advance the Company’s gold mine development project, Bell Mountain in Nevada
➢
For general corporate purposes.
The
Rights
Offering
was
oversubscribed
by
approximately
191%.
The
Company
received
43,373,784
initial
subscriptions
pursuant
to
the
basic
subscription
privilege,
and
49,081,602
additional
subscriptions
pursuant
to
the
additional subscription privilege.
The
additional
subscriptions
were
prorated
within
the
5,073,103
units
remaining
after
the
initial
subscriptions,
and
the
extraneous
balance
of
subscription
funds
returned
to
the
subscribers.
As
a
result,
the
total
number
of
units
to be issued under the Rights Offering is the maximum of 48,446,887 units.
Each
unit
consists
of
one
common
share
(a
“Common
Share”
)
and
half
(½)
a
Common
Share
purchase
warrant,
with
each
full
warrant
(a
“
Warrant
”)
exercisable
for
one
Common
Share
at
a
price
of
$0.15
per
share
until
August
12,
2021,
subject
to
early
expiry
in
the
event
the
20-day
weighted
average
trading
price
of
the
Common
Shares exceeds $0.30. The Rights Offering remains subject to the final acceptance of the TSXV.
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 managements’ expertise supports this strategy.
For further information, please contact:
EROS Resources Corp.
Ron Netolitzky
President and Chief Executive Officer
Phone: 604-688-8115
ANY
SECURITIES
REFERRED
TO
HEREIN
WILL
NOT
BE
REGISTERED
UNDER
THE
US.
SECURITIES
ACT
OF
1933
(THE
“1933
ACT”)
AND
MAY
NOT
BE
OFFERED
OR
SOLD
IN
THE
UNITED
STATES
OR
TO
A
U.S.
PERSON
IN
THE
ABSENCE
OF
SUCH
REGISTRATION
OR
AN
EXEMPTION
FROM
THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT.
This
press
release
shall
not
constitute
an
offer
to
sell
or
the
solicitation
of
an
offer
to
buy
nor
shall
there
be
any
sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward Looking Statements
This
release
contains
forward-looking
statements.
All
statements,
other
than
statements
of
historical
fact
that
address
activities,
events
or
developments
that
we
believe,
expect
or
anticipate
will
or
may
occur
in
the
future
are
forward-looking
statements.
These
forward-looking
statements
reflect
our
current
expectations
or
beliefs
based
on
information
currently
available
to
us.
Forward-looking
statements
in
this
release
include,
without
limitation,
statements
with
respect
to:
the
closing
of
the
Rights
Offering,
the
closing
of
the
Private
Placement
and
the
use
of
proceeds
from
the
Rights
Offering
and
the
Private
Placement.
Forward-looking
statements
are
subject
to
a
number
of
risks
and
uncertainties
that
may
cause
our
actual
results
to
differ
materially
from
those
discussed
in
the
forward-looking
statements
and,
even
if
such
actual
results
are
realized
or
substantially
realized,
there
can
be
no
assurance
that
they
will
have
the
expected
consequences
to,
or
effects
on,
us.
Factors
that
could
cause
actual
results
or
events
to
differ
materially
from
current
expectations
include,
among
other
things,
delays
in
obtaining
or
failure
to
obtain
required
approvals
to
complete
the
Rights
Offering
and
the
Private
Placement;
and
other
risks
related
to
our
business,
the
Rights
Offering
and
the
Private
Placement.
Any
forward-looking
statement
speaks
only
as
of
the
date
on
which
it
is
made
and,
except
as
may
be
required
by
applicable
securities
laws,
we
disclaim
any
intent
or
obligation
to
update
any
forward-looking
statement,
whether
as
a
result
of
new
information,
future
events
or
results
or
otherwise.
Although
we
believe
that
the
assumptions
inherent
in
the
forward-looking
statements
are
reasonable,
forward-looking
statements
are
not
guarantees
of
future
performance
and,
accordingly,
undue
reliance
should
not
be
put
on
such
statements
due
to
their
inherent
uncertainty.
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.
EROS Resources Corp.
Investor Inquiries:
Suite 420 - 789 West Pender Street
Vancouver, British Columbia,
T: 604-688-8115
w:
www.erosresourcescorp.com
Lubica Keighery
VP Corporate Development
c: 778-889-5476