Lincoln Gold and Eros Resources Announce Signing of a Non-Binding LOI
Lincoln Gold and Eros Resources Announce
Signing of a Non-Binding LOI
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER, BC
,
Aug. 10, 2023
/CNW/ -
Eros Resources Corp. ("Eros")
(TSXV: ERC)
and
Lincoln Gold Mining Inc. ("Lincoln")
(TSXV: LMG) are pleased to announce that the
companies have signed a non-binding Letter of Intent ("
LOI
") to begin negotiations for
Lincoln
to
acquire the Bell Mountain project from Eros. As a result of the proposed transaction, Eros. will
acquire shares in
Lincoln
.
The leadership team at Eros is optimistic about the potential outcomes of this strategic move,
believing that the transformation into a holding company and the collaboration with
Lincoln
will unlock
new growth opportunities and further enhance the company's position in the mining sector.
The Bell Mountain project is located in Churchill Country,
Nevada
approximately 3 hours drive from
Reno
. Bell Mountain has excellent access and is in a mining friendly County. Details of the purchase
arrangement are being negotiated at present and should be finalized shortly.
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 Bell Mountain 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
. The property is 100%
controlled by Eros and has a gold and silver resource. The Bell Mountain project has all major
permits in place to advance it through construction and into operations.
Lincoln
believes that the two projects, the Bell Mountain and the Pine Grove Pine Grove combined
will make for an attractive mining operation for a number of reasons.
Lincoln's
Pine Grove
project is
located in
Lyon County
, only a two-hour drive from the Bell Mountain project. 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.
Detailed plans for starting operations are being worked on. With the excellent exploration potential at
both operations
Lincoln
believes that there is a chance to increase the gold/silver resources at both
properties leading to increased gold production and mine life.
This enhanced mine life provides investors with reduced risk, as there will be an opportunity to utilize
capital infrastructure over a longer time frame. The strategic utilization of capital infrastructure not
only minimizes financial risk but also strengthens the operational resilience of the combined project.
The extended operational horizon aligns with Eros Resources Corp.'s commitment to responsible
and sustainable mining practices while capitalizing on favorable market conditions.
Additionally, the allocation of funds for this venture has been meticulously considered.
Lincoln
will be
responsible for arranging the capital required to bring Bell Mountain into production, minimizing the
financial burden on Eros. This strategic allocation of funds underscores Eros' dedication to prudent
resource management and its focus on generating value for its shareholders.
As negotiations progress between Eros Resources Corp. and Lincoln Gold Mining Inc, both
companies will work diligently to reach an agreement that serves the best interests of all
stakeholders. The proposed transaction is subject to regulatory approvals and customary closing
conditions.
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
is working with the U.S.
Forest Service
to secure the permits necessary to develop the Pine
Grove Gold Project into a low-cost heap leach operation with a high-grade gravity circuit.
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/August2023/10/c4336.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; Lubica Keighery, VP Corporate
Development, c: 778-889-5476
CO: Eros Resources Corp.
CNW 07:00e 10-AUG-23