Erin Ventures - A 20 year journey interrupted by 12.5 years
The History of Erin Ventures in Serbia
A 20 year journey interrupted by 12.5 years of chaos and snail like Serbian bureaucracy.
Because it's Christmas, I will just post the facts for anyone who is unaware of Erin Ventures' history in Serbia and for those who constantly complain about the lack of progress by management in "20+ years".
To be absolutely clear, Erin Ventures has NOT been working on the Pisjanja property for 20+ years.
In fact, you must first consider that Erin Ventures could not officially start any exploration work whatsoever on Piskanja until a Joint Venture Agreement signed with EPS on January 22, 1997 received official final approval on February 13, 1997.
Officially, Erin Ventures could not start exploring Piskanja until February 13, 1997.
It will be 20 years on February 13, 2017 that Erin Ventures first started exploring the Piskanja property in Serbia.
Erin Ventures was unable to do any work on the property for 12.5 years of those almost 20 years due to circumstances that we out of their control..
Basically, to put things into perspective, Erin Ventures has actually only been able to "work" on the Piskanja property for 7.5 years.
Are you surprised that so much time was lost because of events that were completely out of Erin Ventures' control? This post should clear things up for you.
If you consider what Erin Ventures had to do and how long they worked to get the Piskanja property back, it should put Erin Ventures' achievement into perspective.
Erin Ventures suspended operations in Serbia due to the conflict in the first quarter of 1998. and did not offcially get the exploration license back until August 31, 2010. That is 12.5 years.
If you consider all of the facts (please see below), what Erin Ventures has achieved, although it appears slow going, is actually quite impressive.
History of Erin Ventures in Serbia
October 1996
In October 1996 the corporation entered into a Letter of Intent with Electroprivreda, the national power company of Yugoslavia to jointly develop a 7.5 million metric tonne Boron property. The Letter of Intent gives Erin Ventures access to vast reserves of Boron.
January 22, 1997
Erin Ventures signed a Joint Venture Agreement dated January 22, 1997 among Electroprivreda Srbije and the Issuer, the Issuer holds a 50% interest in the Piskanja Borate Property located in Yugoslavia through its 50% ownership of Ras Borati Ltd.
February 13, 1997
Erin Ventures has received the final approval and signing of its 50/50 foreign joint venture agreement with Electroprivreda, Sjerbje.
June 11, 1997 to November 11, 1997
Drilling done on Piskanja and samples collected.
January 26, 1998 to January 28, 1998
Analysis conducted on drill samples.
February 5, 1998
Mr. Tim Daniels, President of Erin Ventures Inc. is pleased to announce that the initial assays from the infill drill program on the Corporation's Piskanja borite project in Yugoslavia, have met and exceeded expectations.
First quarter 1998
Due to the current civil unrest in Yugoslavia’s southern region of Kosovo, and resulting international sanctions against Yugoslavia, all work programs on the Piskanja Borate Property were suspended in the first quarter of 1998, pursuant to a force majeure clause in the agreement. The continuation of the work program is expected when the situation in Yugoslavia normalizes.
An international chemicals corporation is currently conducting a due dilligence review of the Piskanja Borate Property for the purpose of a possible joint venture with Ras Borati Ltd.
May 28, 1998
Mr. Tim Daniels, President, announces that the Corporation, is in advanced discussions with a leading international industrial minerals company. The purpose of these discussions is to form a strategic alliance in order to effectively develop the Corporation’s Piskanja Borate Property in Yugoslavia. Both parties are currently exchanging information and conducting due diligence, and are treating this process as a matter of high priority.
October 1, 1998
The Corporation is pleased to announce the appointment of Blake Fallis as its Financial Public Relations Consultant, effective immediately replacing the former Public Relations Consultant of the Corporation. Blake Fallis will provide investor relation services to investment professionals, shareholders and inquiring investors. Mr. Fallis has worked with various private and public companies to provide corporate finance, investor relations, and corporate development strategies.
June 25, 2002
Members of Erin Ventures’ management have recently returned from Serbia, where they participated in a series of successful meetings and discussions. The purpose of this trip was:
1) to establish (and/or reestablish) relationships between Erin and key members of the Serbian Government and Parliament, regulatory agencies, Canadian Embassy staff, and local Serbian business leaders;
2) to review, in detail, proposed and enacted changes to Serbian laws and business customs, as they pertain to Erin’s mining interests;
3) to develop a greater awareness of Erin Ventures’ position, amongst the appropriate Serbian authorities; and
4) to propose a revised development plan for the boron deposits, based upon all new information and insights gathered during this trip.
As a result of these meetings, Erin Ventures formulated and submitted a revised development plan to the Serbian authorities that includes complete exploration and exploitation rights to all boron deposits within the Jarondol Basin, including but not limited to the previously explored Piskanja deposit. Additionally, this plan calls for a joint venture that includes Erin Ventures, Erin’s previously announced strategic partner, and a Serbian government appointed mining partner.
This proposed development plan has received the support and endorsement of key Serbian authorities. As well, a schedule of events and timelines for the formal approval process has been agreed upon, and will commence shortly.
Shareholders must be cautioned that while Erin has received approval in principle from key Serbian authorities for this development plan, a formal binding agreement must be completed, submitted and approved, before any recommencement of mining activities is possible.
October 10, 2003
By way of update and clarification of recent events, Erin Ventures Inc. reports the following:
In June of this year, Erin submitted a formal application for a mining concession covering the Jarondol Basin region in Serbia, for the exploration and exploitation rights to boron. This concession application was intended to replace the original joint venture agreement between Erin and the Serbian national power corporation that was signed in 1997. This new proposal was submitted by Erin only after extensive consultation with the appropriate Serbian Government authorities, and is in keeping with the recently enacted Serbian concession law as it pertains to mining, the environment, foreign ownership, and other laws and considerations. Erin is of the opinion that this new proposal offers considerable benefit to both Erin and the Republic of Serbia, rela tive to the original joint venture agreement.
On the 28th of August, the Serbian Government officially accepted and approved the proposal in Erin’s concession application, during a formal sitting of the Government.
This Government approval, as stated in the concession law, is subject to:
(i) Erin and the relevant government ministry (or ministries) entering into a binding contract, detailing the parameters of the concession;
(ii) an independent legal opinion on the granting of the concession; and
(iii) a review by an expert, government appointed concession committee charged primarily with the task of ensuring the implementation of the concession agreement, and overseeing the Republic’s interest in a concession. The government has developed a framework for the process that helps to limit the potential for delays in obtaining the required ministerial and committee reviews, in order to ensure an efficient and expeditious completion of the process.
Representatives of Erin and the appropriate authorities are currently meeting in an attempt to finalize these points. Erin’s management is optimistic that this process will be successfully concluded in the near future. However, as Erin is one of the first mining candidates to pass through this process, it is finding that the procedures involved are still being defined and refined on an on going basis.
Further information respecting these matters will be provided when available.
Cautionary note:
There is no assurance that Erin will be able to negotiate a binding contract with the Serbian authorities, or that any such agreement, if reached, will be confirmed by the concession committee. In addition, any such agreement, if reached, may be subject to a number of conditions and timelines, such as financing and expenditure requirements that Erin may not be able to satisfy.
January 14, 2005
By way of update, and further to a new release dated 10-10-03, Erin reports the following:
Members of Erin’s management have been conducting a series of ongoing meetings in Serbia with key members of the Serbian Government, the Serbian Privatization Agency, Canadian Embassy staff, and other relevant parties, in order to further Erin’s attempt to finalize a new agreement with the Serbian authorities regarding Erin’s Serbian borate property.
As reported in the news release of October 10, 2003, Erin submitted a formal application for a mining concession covering the Jarondol Basin region in Serbia, for the exploration and exploitation rights to boron.
This concession application is intended to replace the original joint venture agreement between Erin and the Serbian national power corporation that was signed in 1997, and is in keeping with new Serbian laws and reforms. To date, no new binding contract has been entered into by the parties.
The Serbian authorities recently stated a goal of granting a concession on the boron property by way of tender before the end of 2004. This has not happened to date. Furthermore, the Serbian government has stated that it is committed to expediting the privatization process during 2005 with a renewed commitment to attracting foreign capital and expertise in order to aid the Serbian economy.
Further information respecting these matters will be provided when available.
Cautionary note:
There is no assurance that Erin will be able to negotiate a binding contract with the Serbian authorities, or that any such agreement, if reached, will be confirmed by the concession committee. In addition, any such agreement, if reached, may be subject to a number of conditions and timelines, such as financing and expenditure requirements that Erin may not be able to satisfy.
April 22, 2005
By way of update, Erin Ventures Inc. reports the following:
Erin has received information today that the Serbian government has announced its intention to conduct a public tender for a concession for the mineral rights to boron for the Jarandol Basin in Serbia. At the present time it is not possible to determine the status of this matter with any certainty. Erin is currently seeking clarification from the Serbian authorities with respect to this announcement and will issue this immediately when received.
It is Erin’s contention that it maintains a valid contract with respect to the development of the Piskanja boron deposit, located within the Jarandol Basin. Erin is prepared to aggressively defend its position if need be, using all legal and diplomatic means at its disposal.
April 25, 2008
By way of update, and further to the news release dated April 22, 2005, Erin Ventures Inc. reports the following:
Erin has confirmed that the Serbian government has announced a public tender for the granting of a concession for the mineral rights to boron for the Jarandol Basin in Serbia. A public opening of the tender bids is scheduled for September 5 - 8, 2005, with the winning bid to be chosen and ratified by the Serbian government within a 90 day period of the opening of the bids.
It is Erin’s contention that it maintains a valid joint venture contract with Elektroprevreda (the government owned power corporation of Serbia) with respect to the development of the Piskanja boron deposit, located within the Jarandol Basin. This first-of-its-kind joint venture was officially sanctioned by the Serbian government at the time of its signing.
Since the fall of the Milosevic regime and the lifting of international sanctions against Serbia, Erin has made numerous attempts to recommence operations and/or restructure its contract to reflect the changing laws in Serbia. Erin remains ready to accommodate a restructuring of the joint venture, and is prepared to do so as long as any such restructuring is in Erin’s best interest.
In light of this recent development, Erin’s management is assessing all possible courses of action available to it, and is prepared to aggressively defend its position as required, using all legal and diplomatic means at its disposal. There can be no assurance that any such action, if taken, will be successful. Erin is arranging meetings with the appropriate Serbian authorities to discuss this situation, as soon as possible.
August 16, 2005
ERIN SUBMITS BID FOR SERBIAN BORON PROJECT
Further to its news release dated April 25, 2005, Erin Ventures Inc. reports the following:
Erin has tendered a bid to the Serbian government in accordance with the public tender process for the granting of a concession for the mineral rights to boron for the Jarandol Basin in Serbia.
According to Serbian government published information, a public opening of tendered bids is scheduled for September 5th to 8th, 2005, with the winning bid to be chosen and ratified by the Serbian government within a 90 day period of the opening of the bids.
Erin’s participation in this tender process in no way mitigates its position that the company continues to hold a valid joint venture contract with Elektroprevreda (the government owned power corporation of Serbia) with respect to the development of the Piskanja boron property, located within the Jarandol Basin of Serbia. Erin’s management is actively taking steps to defend Erin’s position on this matter, using legal and diplomatic means.
With the assistance of Erin’s legal counsel, local Serbian management, advisors and others, a strategy has been formulated and implemented that affords Erin its best chance of achieving the reinstatement of its property rights to the Piskanja property and/or compensation for its loss, as the case may be. Erin will likely continue to seek compensation for its financial loss in this matter, regardless of the outcome of the present tender. There can be no assurance that Erin will succeed in its present bid attempt, or that any legal or other action it pursues will be successful.
November 17, 2005
ERIN VENTURES UPDATE ON BORON PROJECT
The company is aware of an article dated November 17, 2005, appearing in Serbia's Official Gazette stating that Serbia has granted Rio Tinto a concession to explore and mine boron in Baljevac, southern Serbia. The Company has not received any information whatsoever from the Serbian authorities at this time and is not in a position to confirm the accuracy of the article. It is the understanding of the company that there is a 60 day period in which the concession committee would review tenders and pass recommendations on to the Serbian Government for a further 30 day review and final decision prior to the awarding of any concession.
The Company wishes to reiterate that it’s participation in this tender process in no way mitigates its position that the company continues to hold a valid joint venture contract with Elektroprevreda (the government-owned power corporation of Serbia) with respect to the development of the Piskanja boron property, located within the Jarandol basin of Serbia. Erin's management is actively taking steps to defend Erin's position on this matter, using legal and diplomatic means.
Erin will likely continue to seek compensation for its financial loss in this matter, regardless of the outcome of the present tender. There can be no assurance that Erin will succeed in its present bid attempt, or that any legal or other action it pursues will be successful.
November 29, 2005
ERIN READIES LEGAL ACTION RE: BORON PROPERTY
Further to its news release dated November 17, 2005, Erin Ventures Inc. reports the following:
Erin has received correspondence directly from the Serbian government, announcing their official decision in accordance with the public tender process for the granting of a concession for the mineral rights to boron for the Jarandol Basin in Serbia. According to Serbian government correspondence, Erin was unsuccessful in its bid attempt for the boron mineral rights.
Erin’s participation in this tender process in no way mitigates its position that Erin continues to hold a valid joint venture contract with Elektroprevreda (the government owned power corporation of Serbia) with respect to the development of the Piskanja boron property, located within the Jarandol Basin of Serbia.
In light of this decision by the Serbian government, Erin’s legal counsel is preparing to commence legal action on behalf of Erin, which will seek monetary compensation for Erin’s loss and damages. Further information respecting these matters will be provided as it becomes available.
There can be no assurance that any legal or other action pursued by Erin regarding this matter will be successful.
January 24, 2006
ERIN SEEKS COMPENSATION RE: SERBIAN BORON PROPERTY
Further to its news release dated November 29, 2005, Erin reports the following:
Erin Ventures Inc. has commenced the process of legal action against Elektroprevreda-Serbia (the Serbian government’s wholly owned, national power corporation). Erin is seeking compensation regarding the Piskanja boron property in Serbia. This claim, the first step in an anticipated larger litigation strategy, seeks monetary compensation for losses and certain damages, totaling approximately US$15 million.
Further legal action, if taken by Erin , will seek substantial compensation for lost potential profits from the boron property, and other damages apart from the initial US$15 million claim; may name Elektroprevreda and/or other related, responsible parties; and may be conducted within Serbia and/or other international venues.
This legal action is in defense of Erin’s contention that it holds a valid joint venture contract with Elektroprevreda with respect to the development of the Piskanja boron property, located within the Jarandol Basin of Serbia. Recently, the current Serbian government granted a concession to exploit the boron deposits in the Jarandol Basin to a third party, in spite of direct knowledge of Erin’s contractual rights to the property, including a prior Serbian government’s official sanctioning of Erin’s joint venture contract with Elektroprevreda.
After careful deliberation, Erin has retained the services of a respected, experienced Serbian legal team to represent it in this matter. In order to mitigate its legal costs, Erin has negotiated an agreement whereby its legal counsel is to be compensated primarily on a contingency basis, receiving 5% of the proceeds of any compensation awarded to Erin as a result of this action.
This matter will be adjudicated by the Serbian International Arbitration Court. It is anticipated that a ruling will take anywhere from several months up to one year to complete. Further information respecting these matters will be provided as it becomes available.
Cautionary Note:
There can be no assurance given that any legal or other action pursued by Erin regarding this
matter will be successful.
December 13, 2007
Erin Ventures Inc.: Serbian Property Legal Action Update
Previously, in its news release dated January 24, 2006, Erin reported that it had commenced legal action against Elektroprevreda-Serbia ("EPS"), the Serbian government's wholly owned, national power corporation, whereby Erin is seeking monetary compensation for losses and certain damages, totaling approximately US$15 million. This legal action is the result of Erin's contention that it held a valid joint venture contract with EPS to develop a boron property in Serbia and, in spite of direct knowledge of Erin's contractual rights to the property, the Serbian government granted a concession to exploit these boron deposits to a third party. This action is being adjudicated by the Serbian International Arbitration Court.
Erin reports that the written submission portion of these proceedings has now been concluded by the Arbitration Court. In its written submission, Erin documented several alleged breaches of contract by EPS, as well as the failure of the Serbian authorities to recognize and/or safeguard Erin's interest in the Property. EPS's primary contention in response to Erin's claims was to state that the legal action by Erin should be disregarded by the Arbitration Court, arguing that the statute of limitations had expired on the claim. The Arbitration Court members ruled unanimously that, in fact, Erin's claim remains in good standing, and will be adjudicated by the Court. The next step in the process is the calling of witnesses for questioning by the Arbitration Court. This will not happen prior to 2008. Further information regarding this matter will be provided when available.
October 28, 2008
Erin Advances Serbian Boron Property Settlement Discussions
Erin Ventures Inc. (TSX-Venture: EV) reports that members of its management have recently met with the Republic of Serbia’s newly appointed Minister of Mining and Energy, Prof. Petar Skundric, regarding Erin’s legal dispute over the Piskanja boron property, located in southern Serbia. Prof. Jujic, a member of Erin’s board of directors, is a professional colleague and long-time acquaintance of both Dr. Skundric, and the current Serbian Prime Minister, Mirko Cvetkovic, who worked for many years in the Mining Institute of Serbia.
As previously reported, Erin is seeking monetary compensation for losses and certain damages, totaling approximately US$15 million. This legal action is the result of Erin’s contention that it holds a valid joint venture contract to develop the Piskanja boron property and, in spite of direct knowledge of Erin’s contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party.
In this recent meeting, the Minister of Mining and Energy expressed his desire to see this matter resolved by means other than le gal action. At the request of the Minister, Erin has submitted a proposal to settle the legal dispute, which includes the following information:
1) An outline of the issues and events which led to Erin’s legal action;
2) Details of mining projects in Serbia, including but not limited to the Piskanja boron property, that Erin may have an interest in pursuing at this time; and
3) What actions Erin demands the Serbian government take regarding these projects of interest to Erin. Erin’s submission of this proposal in no way mitigates its position that it continues to hold a valid claim for losses and damages.
Subsequently, Dr Jujic has received information indicating that the mineral concession on the Piskanja boron property is in the process of being returned to the Serbian government, although Erin has not received any official confirmation of this from the Serbian government at this time.
Summary of Erin’s legal action
Previously, Erin reported that it had commenced legal action against Elektroprevreda-Serbia (“EPS”), the Serbian government’s wholly owned national power corporation, whereby Erin is seeking monetary compensation for losses and certain damages, totaling approximately US$15 million. This legal action, the first step in an anticipated larger litigation strategy, is the result of Erin’s contention that it holds a valid joint venture contract with EPS to develop the Piskanja boron property in Serbia and, in spite of direct knowledge of Erin’s contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party. This action is being adjudicated by the Serbian International Arbitration Court. The next step in the process is the calling of witnesses for questioning by the Arbitration Court.
Further legal action, if taken by Erin, will seek substantial compensation for lost potential profits from the boron property, and other damages apart from the initial US$15 million claim; may name Elektroprevreda and/or other related, responsible parties; and may be conducted within Serbia and/or other international venues.
Summary of the Piskanja boron property
The Piskanja property has a partially drill proven and probable colemanite-ulexite reserve of approximately seven million tonnes of 39 per cent B2O3 (boron). The deposit is open both to the south and the east. Evaluation of the drill hole data clearly indicates that the Piskanja deposit has the potential of hosting additional significant borate reserves that would place it on a level with known world-class borate deposits such as those in California and Turkey.
Borate minerals and refined borate products are used extensively worldwide in the manufacture of vitreous products such as fiberglass insulation, textile fiberglass, borosilicate glass, ceramic glazes and porcelain enamels. These applications account for approximately 60 per cent of borate consumption with detergents, fire retardants, metallurgy, agriculture, insecticides, wood preservatives and specialty products accounting for the remainder. Market prices reflect the relative scarcity of borates with prices averaging $250 US/t for colemanite concentrate, $900/t for boric acid, and up to $150/kg for specialty boron oxides.
Further information regarding this matter will be provided when available.
Cautionary Note:
There can be no assurance given that any legal or other action currently being pursued by Erin
regarding this matter will be successful.
December 2, 2008
Erin Ventures Inc. (TSX-Venture: EV) reports that it has received notice from the Serbian International Arbitration Court of its intention to call witnesses for questioning starting on December 5, 2008, in Erin’s legal action against the Serbian national power corporation. As previously reported, Erin is seeking monetary compensation totaling approximately US$15 million. This legal action is based on Erin’s claim that it held a valid joint venture contract to develop the Piskanja boron property and, in spite of direct knowledge of Erin’s contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party.
Erin is pleased with this latest advancement in the process, which is the final step prior to the Arbitration Court delivering a binding decision. Several members of Erin’s management will give evidence at the hearing.
Also, as previously reported, members of Erin’s management have recently met with the Republic of Serbia ’s newly appointed Minister of Mining and Energy, to discuss a possible resolution to this dispute by means other than legal action. Follow up meetings are being planned with the Minister to coincide with the December Arbitration Court hearing, in the hopes of furthering proposals regarding an amicable resolution.
Summary of Erin’s legal action
Previously, Erin reported that it had commenced legal action against Elektroprevreda-Serbia (“EPS”), the Serbian government’s wholly owned national power corporation, whereby Erin is seeking monetary compensation for losses and certain damages, totaling approximately US$15 million. This legal action, the first step in an anticipated larger litigation strategy, is based on Erin’s claim that it held a valid joint venture contract with EPS to develop the Piskanja boron property in Serbia and, in spite of direct knowledge of Erin’s contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party. This action is being adjudicated by the Serbian International Arbitration Court.
Further legal action, if taken by Erin, will seek substantial compensation for lost potential profits from the boron property, and other damages apart from the initial US$15 million claim; may name Elektroprevreda and/or other related, responsible parties; and may be conducted within Serbia and/or other international venues.
Summary of the Piskanja boron property
The Piskanja property has a partially drill proven and probable colemanite-ulexite reserve of approximately seven million tonnes of 39 per cent B2O3 (boron). The deposit is open both to the south and the east. Evaluation of the drill-hole data indicates that the Piskanja deposit has the potential of hosting additional significant borate reserves.
Borate minerals and refined borate products are used extensively worldwide in the manufacture of vitreous products such as fiberglass insulation, textile fiberglass, borosilicate glass, ceramic glazes and porcelain enamels. These applications account for approximately 60 per cent of borate consumption with detergents, fire
retardants, metallurgy, agriculture, insecticides, wood preservatives and specialty products accounting for the remainder. Market prices reflect the relative scarcity of borates with prices averaging $250 US/t for colemanite concentrate, $900/t for boric acid, and up to $150/kg for specialty boron oxides.
December 16, 2008
Erin Ventures Inc. (TSX-Venture: EV) reports that, further to its news release of December 2, 2008, the Serbian International Arbitration Court will reconvene on December 22, 2008 to continue the examination of witnesses in Erin’s legal action against the Serbian national power corporation. As previously reported, Erin is seeking monetary compensation totaling approximately US$15 million. This legal action is based on Erin’s claim that it held a valid joint venture contract to develop the Piskanja boron property and, in spite of direct knowledge of Erin’s contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party.
Given the number of witnesses and the volume of information involved, Erin anticipates that a decision will not likely be rendered by the Arbitration Court until well into the first quarter of 2009. As well, Erin expects that discussions will continue in the near future with members of the Serbian Government regarding a possible resolution to this dispute by means other than legal action.
Further information regarding this matter will be forthcoming as and when available.
Summary of Erin’s legal action
Previously, Erin reported that it had commenced legal action against Elektroprevreda-Serbia (“EPS”), the Serbian government’s wholly owned national power corporation, whereby Erin is seeking monetary compensation for losses and certain damages, totaling approximately US$15 million. This legal action, the first step in an anticipated larger litigation strategy, is based on Erin’s claim that it held a valid joint venture contract with EPS to develop the Piskanja boron property in Serbia and, in spite of direct knowledge of Erin’s contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party. This action is being adjudicated by the Serbian International Arbitration Court.
Further legal action, if taken by Erin, will seek substantial compensation for lost potential profits from the boron property, and other damages apart from the initial US$15 million claim; may name Elektroprevreda and/or other related, responsible parties; and may be conducted within Serbia and/or other international venues.
December 19, 2008
Erin Ventures Inc. (TSX-Venture: EV) reports that further to its news release of Oct. 23, 2008, the Serbian government has announced that effective immediately the mineral concession to exploit the Piskanja boron property has been officially returned to the Serbian government by a third party.
This mineral concession was granted to a third party by a previous Serbian government, in spite of its knowledge of Erin’s contractual rights to the property through a joint venture with Elektroprevreda-Serbia (“EPS”), the Serbian government’s wholly owned national power corporation. As previously reported Erin has ongoing legal action against EPS, whereby Erin is seeking monetary compensation for losses and certain damages, totaling approximately US$15 million. Erin expects that a decision regarding this legal action could be rendered as soon as the first quarter of 2009.
Also reported by Erin in its news release of Oct. 23, 2008, management of Erin has recently met the Minister of Mining and Energy of Serbia, wherein the Minister expressed his desire reach a settlement of the dispute by means other than legal action. At the request of the Minister, Erin has submitted a proposal to settle the legal dispute, which includes the following information:
1) An outline of the issues and events which led to Erin’s legal action;
2) Details of mining projects in Serbia, including but not limited to the Piskanja boron property, that Erin may have an interest in pursuing at this time; and
3) What actions Erin demands the Serbian government take regarding these projects of interest to Erin. Follow up meetings with the Minister are being coordinated for the near future.
February 26, 2009
Erin Ventures Inc. (TSX-Venture: EV) reports that its board of directors has agreed to implement a shareholder protection rights plan.
The intended issuance of a rights plan is not in response to management's anticipation of any specific, current acquisition or transaction, nor is it intended to prevent a takeover of Erin, nor to secure continuance in office of management or the directors. The objective of the proposed rights plan is to give adequate time for the shareholders of Erin to properly assess the merits of a takeover bid without undue pressure, and to allow competing bids to emerge. The rights plan is further designed to give the board of directors time to consider alternatives, with the intent of allowing shareholders the opportunity to receive full and fair value for their common shares. The rights plan may discourage certain transactions. Adoption of the rights plan will not detract in any way from or lessen the duties of the board of directors to act honestly and in good faith with a view to the best interests of Erin and its shareholders, and to act in accordance with such standards when considering a bid made for the common shares of Erin.
The rights, to be issued under the plan once all regulatory and compliance requirements have been met, will become exercisable only if a party acquires 20 per cent or more of Erin’s common shares without complying with the rights plan or without the approval of the board of directors of Erin. Under the proposed terms of the rights plan, those bids
that meet certain requirements intended to protect the interests of shareholders are considered to be permitted bids. A permitted bid must be made by way of a takeover bid circular prepared in compliance with applicable securities laws, remain open for 60 days and satisfy certain other conditions. Under the rights plan, Erin plans to issue one right in respect of each common share of Erin. In the event a takeover bid is made that does not meet the permitted bid requirements, those rights will entitle shareholders, other than any shareholder or group of shareholders making the takeover bid, to purchase additional common shares of Erin at a substantial discount to the market value of such common shares at the time. Erin is not aware of any pending or threatened takeover bids.
The rights plan will be operative for a three-year period, once adopted. The plan will be submitted for ratification by common shareholders at Erin's next annual shareholders' meeting. To remain effective, the plan must be approved by more than 50 per cent of the votes cast at that meeting by independent (non-management) shareholders. The rights plan is also subject to the approval of the TSX Venture Exchange.
April 30, 2009
Erin Ventures Inc. (TSX-Venture: EV) reports that the Serbian International Arbitration Court will reconvene on May 20, 2009 to continue the examination of witnesses in Erin's legal action against the Serbian national power corporation (further to Erin's news release of December 16, 2008). As previously reported, Erin is seeking monetary compensation totaling approximately US$15 million. This legal action is based on Erin's claim that it held a valid joint venture contract to develop the Piskanja boron property and, in spite of direct knowledge of Erin's contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party.
The Court's examination of Erin's primary witnesses is now complete, with the testimony and examination of all secondary witnesses expected to take a few days to complete, once the Court reconvenes on May 20th.
As well, as previously reported, Erin is engaged in ongoing discussions with members of the Serbian Government and other key persons regarding a possible amicable settlement of this legal action.
May 4, 2009
Erin Ventures Inc. (TSX-Venture: EV) reports that the Serbian International Arbitration Court will reconvene on May 20, 2009 to continue the examination of witnesses in Erin’s legal action against the Serbian national power corporation (further to Erin’s news release of December 16, 2008). As previously reported, Erin is seeking monetary compensation totaling approximately US$15 million. This legal action is based on Erin’s claim that it held a valid joint venture contract to develop the Piskanja boron property and, in spite of direct knowledge of Erin’s contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party.
The Court’s examination of Erin’s primary witnesses is now complete, with the testimony and examination of all secondary witnesses expected to take a few days to complete, once the Court reconvenes on May 20th.
As well, as previously reported, Erin is engaged in ongoing discussions with members of the Serbian Government and other key persons regarding a possible amicable settlement of this legal action.
May 28, 2009
Serbian Lawsuit and Boron Property Settlement Discussions Continue
Erin Ventures Inc. [TSX-Venture: EV] reports that the Serbian Ministry of Mining and Erin's management have agreed to continue discussions early in June regarding a possible settlement to Erin's legal action over the Piskanja boron property. These meetings will continue to focus on the form and manner of a possible settlement that would be acceptable to both parties including, but not limited to, reinstating Erin's right to the Piskanja boron property. Erin's legal action results from the decision of a previous Serbian government to grant a concession to exploit these boron deposits to a third party, in spite of direct knowledge of Erin's contractual rights to the property. Subsequently, the concession to exploit the Piskanja boron property has been officially returned to the Serbian government, and remains uncommitted.
The Minister of Mining and Energy has expressed his desire to see this matter resolved by means other than legal action (as reported by Erin in a release dated October 23, 2008). At the request of the Minister, Erin submitted a proposal which includes an outline of the issues and events which led to Erin's legal action, details of mining projects in Serbia (including, but not limited to the Piskanja boron property) that Erin may have an interest in developing, and what actions Erin expects the Serbian government take regarding these projects of interest to Erin. Erin's submission of this proposal in no way mitigates its position that it continues to hold a valid claim for losses and damages.
Summary of Erin's Legal Action
Erin is seeking monetary compensation, totaling approximately US$15 million, as the result of Erin's contention that it holds a valid joint venture contract to develop the Piskanja boron property and, in spite of direct knowledge of Erin's contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party.
The Serbian International Arbitration Court, which is presiding over Erin's legal action, reconvened on May 20, 2009 to continue the examination of witnesses. Erin awaits further communication from the Court regarding this matter.
June 19, 2009
Serbian Lawsuit and Boron Property Settlement Discussions Continue
Erin Ventures Inc. [TSX-Venture: EV] reports that it's management and members of the Serbian Ministry of Mining have agreed to meet, starting June 25th, regarding a possible settlement to Erin's legal action over the Piskanja boron property. These meetings will continue to focus on the form and manner of a possible settlement that would be acceptable to both parties including, but not limited to, reinstating Erin's right to the Piskanja boron property. Erin's legal action results from the decision of a previous Serbian government to grant a concession to exploit these boron deposits to a third party, in spite of direct knowledge of Erin's contractual rights to the property. Subsequently, the concession to exploit the Piskanja boron property has been officially returned to the Serbian government, and remains uncommitted.
Additionally, the Serbian International Arbitration Court, which is presiding over Erin's legal action, has concluded the examination of all witnesses. The Court has the right to recall witnesses and/or request additional written information as it deems necessary prior to adjourning to deliberate a ruling regarding this matter. Erin awaits further communication from the Court.
Summary of Erin's Legal Action
Erin is seeking monetary compensation, totaling approximately US$15 million, as the result of Erin's contention that it holds a valid joint venture contract to develop the Piskanja boron property and, in spite of direct knowledge of Erin's contractual rights to the property, the Serbian government in power at that time granted a concession to exploit these boron deposits to a third party.
May 5, 2010
Erin Signs Serbian Boron Joint Venture Agreement
Erin Ventures Inc. [TSX-Venture: EV] is pleased to report that it has entered in to a binding agreement with the Serbian state-owned mining company, JP PEU, for the joint development of the Piskanja boron deposit, located in Serbia.
This agreement is subject to the Serbian Mining Ministry granting an exclusive exploration license for the Piskanja deposit to Erin. This agreement has been officially endorsed by JP PEU, Ibarski Mines (a wholly owned subsidiary of JP PEU, which currently holds the rights to the Piskanja boron deposit), and the National Serbian Miners Union. It is estimated that the percentage ownership in the joint venture will be approximately 90% Erin; 10% JP PEU, based upon the relative values of the contributions made by the parties.
Erin is currently preparing the documentation required for the exploration license, for submission to the Serbian authorities. It is anticipated that an exploration license may be granted within the next 90 days.
The key terms in the agreement are as follows:
Erin's wholly-owned Serbian subsidiary, Balkan Gold d.o.o. ("Balkan") will apply for an exclusive exploration license on the Piskanja property, and conduct a geological study on the deposit. If results are positive, Balkan will then compose a feasibility study for mine development. Balkan is responsible for 100% of the costs related to these studies, and retains 100% ownership at this stage.
When the feasibility study is complete, Balkan and JP PEU will form a joint venture company that will apply for an exploitation license. However, in the event that JP PEU's corporate structure does not allow for it to enter into this joint venture (as is currently the case), Balkan will retain the right to apply for the exploitation license on its own, and retain 100% interest in the project.
Ownership in the joint venture company will be directly proportional to the value of the assets contributed by each party.
Balkan will be responsible for providing all the funding required to develop the mine and ore processing facilities.
JP PEU will contribute certain existing infrastructure assets in its possession (such as a power substation, access roads, rail spur, office and maintenance buildings in strategic proximity to the property) and historical research data from previous exploration programs at Piskanja. The determination of the assets to be contributed by JP PEU to the joint venture shall be at the sole discretion of Balkan. These assets will be contributed at their established fair market value.
An official determination of percentage ownership will occur at the completion of the mine development, and be based upon the amount that has been actually spent by Balkan on exploration and mine development, and the fair market value of the assets contributed by JP PEU.
Balkan and JP PEU agree that the joint venture company will primarily employ manpower from the Ibarski Mine, as qualified and required.
Each party will have representation on the board of directors of the joint venture company on a basis that reflects their prorata ownership of the joint venture company.
This joint venture agreement between Erin and JP PEU has no direct bearing on Erin's ongoing US$15 million legal action against EPS, the national power corporation of Serbia, regarding alleged breaches by EPS in the former joint venture agreement it held with Erin regarding the development of the Piskanja property (as reported by Erin in its news release dated June 22, 2009).
May 20, 2010
Erin Files for Exploration License on Boron Property
Erin Ventures Inc. [TSX-Venture: EV] reports that the licensing process for the Serbian boron deposit is now underway. It is anticipated that an exploration license may be granted to Erin within 90 days (as reported by Erin in a news release on 5-11-2010).
Under Serbian law, a mineral exploration license is granted exclusively, for a 3 year period. Upon successful completion of the exploration program, the license holder has the sole right to apply for an exploitation (mining) license.
August 31, 2010
Erin Granted License for Serbian Boron Property
Erin Ventures Inc. [TSX-Venture: EV] is pleased to report that it has been granted an exploration license for the Piskanja boron deposit in Serbia, by the Serbian Ministry of Mining and Energy. The license covers an area of approximately 3 square kilometres, and includes the entire known historical mineralized area along with a substantial amount of previously unexplored ground.
This development signals the return of the entire license area previously held by Erin Ventures. Under Serbian law, a mineral exploration license is granted exclusively, for a 3 year period (extendable at the request of the license holder). Upon successful completion of the exploration program, the license holder has the sole right to apply for an exploitation (mining) license.
Erin is planning an exploration program on the Piskanja deposit, which has a historical estimate of approximately seven million tonnes grading 39 per cent B2O3 (boron), with a goal of establishing a NI43-101 compliant resource. A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource. Additional drilling will be required before this historical estimate could be raised to a resource status. Erin is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. Discussions are underway with interested potential strategic partners regarding both the development of the project and the eventual sale of boron.
Additionally, Erin is continuing with its US$15 million legal action against EPS (the National Power Corporation of Serbia) regarding alleged breaches by EPS in the now defunct joint venture it formed with Erin in 1997, for the development of the Piskanja property (as reported by Erin in its news release dated June 22, 2009).
December 7, 2010
Erin Ventures Inc. [TSX-Venture: EV] announces the following update regarding Erin’s Piskanja boron project in Serbia:
Acquisition, compilation and reinterpretation of the entire historical exploration data base of the Piskanja boron deposit is currently underway by Erin’s geological team. Three separate exploration programs have been conducted at Piskanja since the 1980s: a program of 21 diamond core drill holes concluded in 1991, totaling 6,500 meters, conducted by the Geological Institute of Serbia on behalf of the Serbian government; a 10 RC hole drill program completed by Erin Ventures in 1998 totaling 3,300 meters, and; a 14 diamond drill hole exploration program of 6,400 meters completed in 2009 by Rio Tinto’s Serbian subsidiary.
When analysis of the historical data is complete, Erin intends to proceed with the next phase of drilling on the Piskanja deposit, with the goal of establishing a NI43-101 compliant resource, by conducting in-fill drilling and the twinning of certain of the historical holes, along with step-out drilling in an attempt to expand the known size of the resource. This drilling will form the base for a scoping study on developing a plan for mining the deposit. Engineering, geohydrology, and environmental studies will be completed in conjunction with this drilling. It is anticipated that this next phase will commence during the first quarter of 2011, depending on drill availability.
As part of its overall development strategy at Piskanja, Erin’s management recently hosted a due diligence site visit with the management of a company who is a significant participant in the boron market. These discussions are exploring the possibility of developing a long-term strategic alliance regarding the exploitation of the Piskanja deposit. Erin’s management anticipates meetings with additional potential strategic partners, in an attempt to secure the most advantageous alliance possible.
The historical data, prepared to standards of the Serbian government, states that the Piskanja property has a historical resource estimate of approximately 7.5 million tonnes, averaging 36 - 39 per cent B2O3 (boron). The Piskanja deposit has the potential of hosting additional significant borate tonnage beyond the historical estimate, based on initial review of the historical drill information and assay data showing other zones of possible borate mineralization. A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource. Erin is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
It has been ascertained that the boron at Piskanja is primarily colemanite and ulexite. Colemanite currently sells on the world market for approx. US$280/ton, based on a boron content of 40% (approx. the purity found at Piskanja). Ulexite currently sells on the world market for approx. US$500/ton, based on a boron content of 40% (approx. the purity found at Piskanja).
Piskanja is located in a historical mining region that has good infrastructure for mining including roads, rail, electric power, experienced miners, support services, etc., 250 km south of Belgrade, Serbia by good paved roads.
You can find the rest of the news related to the Piskanja Boron property in Serbia on the Erin Ventures news page...
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