Eros Resources Corp. Takes Equity Position in Owl Capital Corp. in Exchange for Assets
Eros Resources Corp. Takes Equity Position
in Owl Capital Corp. in Exchange for Assets
VANCOUVER
,
April 25, 2019
/CNW/ -
Eros Resources Corp.
(TSX.V:
ERC
) ("
Eros
" or the
"
Company
") is pleased to announce that it has signed a term sheet dated
April 10, 2019
(the
"Agreement") with Owl Capital Corp. ("Owl" TSX-V: OCC.P) regarding the sale of the Company's
interests in the Oro Cruz and Eastgate projects as well as Eros' shareholding and warrant position in
Bullfrog Gold Corp.
On closing of the Transaction, Eros will own 14,302,940 shares of Owl, representing 35.9% of the
approximately 39,800,000 total issued and outstanding shares of Owl.
Eros' position in Owl is based on the following:
a)
2,901,275 Owl shares with respect to the sale of Eros' 45% interest in the Eastgate Property;
b)
8,545,000 Owl shares with respect to the sale of Eros' exclusive option to acquire a 37.5% interest in the Oro Cruz Property;
c)
2,856,665 Owl shares with respect to the transfer Eros' 5.58% undiluted equity interest in the capital of Bullfrog Gold Corp., an exploration stage company ("Bullfrog" OTCQB:
BFGC) comprised of 8,750,000 shares and 7,750,000 share purchase warrants of Bullfrog.
Owl is a capital pool company ("CPC") and intends the Transaction to contribute towards a
Qualifying Transaction pursuant to the TSX Venture Exchange (the "Exchange") Policy 2.4 – Capital
Pool Companies. Upon successful completion of the Transaction, Owl will change its name to
Southern Empire Resources Corp. and be a Tier 2 mining issuer.
"Taking an equity position in Owl Capital Corp. is a great investment for Eros" said
Ron Netolitzky
,
CEO of Eros Resources. "Work is continuing to advance the Oro Cruz and Eastgate projects in an
aggressive manner by a well financed and focused management group."
For more information about the transaction, please refer to the news release of Owl Capital Corp.
dated
April 24th, 2019
as posted on
SEDAR
.
The Transaction is subject to the entry into a Definitive Agreement, customary closing conditions and
acceptance of the TSX Venture Exchange.
"Eros' main activity remains advancing
Bell Mountain
project towards production." Ron continued.
"Our target remains the third quarter of this year for the commencement of construction. Discussions
with the regulators and the US Navy remain positive."
Qualified Person
David Tupper
, PGeo, is a qualified person within the context of National Instrument 43-101
Standards of Disclosure for Mineral Projects
and has prepared, read and approved the technical
aspects of this news release.
About Eros
Eros Resources Corp. is a Canadian public company focused on the exploration and development of
resource projects in
North America
. Eros has as its prime business objective the selection of
strategic investments with a Canadian focus and a diverse commodity base. The Company's
expertise in the resource sector supports the selection of these strategic investments.
On Behalf of the Board of Directors of EROS Resources Corp.
Ronald K. Netolitzky
President & CEO
Cautionary note regarding forward-looking statements
Certain statements made and information contained herein may constitute "forward looking
information" and "forward looking statements" within the meaning of applicable Canadian and
United
States
securities legislation, including, among other things, this press release includes references to
mineral resources and future potential forecast economics of extracting those resources. There is no
certainty that any portion of the resources will be confirmed with greater certainty. If confirmed,
there is no certainty that it will be commercially viable to extract any portion of the resource. There is
no certainty that access to the resource area will be re-established, and if access to the resource
area is blocked for an extended period of time, or permanently, there is no certainty that any
compensation will be received by the Company. Forward-looking information involves known and
unknown risks, uncertainties and other factors that may cause actual results or events to differ
materially from those expressed or implied by such forward-looking information, including the re-
establishment of physical access to the property, the availability of adequate and secure sources of
funding to construct the extraction facilities required to extract the mineral resources, prevailing
commodity prices, the receipt of regulatory approvals, environmental risks and the performance of
personnel. While the Company considers its assumptions to be reasonable as of the date hereof,
forward-looking statements and information are not guarantees of future performance and readers
should not place undue importance on such statements as actual events and results may differ
materially from those described herein. The Company does not undertake to update any forward-
looking statements or information except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of
Canada
accepts responsibility for the adequacy or accuracy of this release.
EROS Resources Corp.
Suite 420 - 789 West Pender Street
Vancouver
, British Columbia,
Canada
, V6C 1H2
T: 604-688-8115
w:
www.erosresourcescorp.com
SOURCE
Eros Resources Corp.
View original content:
http://www.newswire.ca/en/releases/archive/April2019/25/c6523.html
%SEDAR: 00006156E
For further information:
Lubica Keighery, VP Corporate Development, c: 778-889-5476
CO: Eros Resources Corp.
CNW 19:02e 25-APR-19