Project Funding UpdateErin financing option from InvestCo unexercised
2019-04-08 16:33 ET - News Release
Mr. Blake Fallis reports
PROJECT FUNDING UPDATE
Further to the news release dated Dec. 21, 2018, InvestCo's financing option for the development of Erin Ventures Inc.'s Piskanja boron project expired on April 1 unexercised, with InvestCo informing Erin that it is unable to exercise the option as a result of InvestCo's imminent internal corporate restructuring. However, the significant institutional investor which specializes in the mining sector (the "Investor") and was introduced by InvestCo as its potential co-investor for the Piskanja project in December, continues to be interested in funding the advancement of the Piskanja project, irrespective of InvestCo's inability to participate in the current funding.
The Investor has been engaged in an investment decision protocol and due diligence process regarding the Piskanja project for the past 90 days. Erin expects this process to be completed in the near future, allowing for further details to be released.
Background
Erin announced in its news release dated June 18, 2018 that it had entered into a strategic partnership option agreement with a London based commodity investment specialist (the "InvestCo") for the continuing development of Erin's Piskanja Borate Project. Under the terms of the agreement, InvestCo had the right to make equity investments in two tranches, totaling USD $20.135 million, subject to TSX Venture Exchange and shareholder approval, with the proceeds to be used for the advancement of Piskanja towards production.
Further, Erin announced on December 21, 2018 that it had agreed with InvestCo to extend the option exercise period of its Tranche 1 Financing Option (USD $5.135 million) until March 31, 2019, with all other terms in the strategic alliance agreement remaining unchanged, as InvestCo had introduced a significant potential co-investor to Erin's Piskanja project which required additional time to complete due diligence.
[Please refer to Erin's complete news releases dated June 18, 2018 and December 21, 2018 for additional salient information]
About Erin Ventures
Erin Ventures Inc. is an international mineral exploration and development company with boron assets in Serbia. Headquartered in Victoria, B.C., Canada, Erin's shares are traded on the TSX Venture Exchange under the symbol "EV" and the OTCQB Venture Market under the symbol "ERVFF".
The technical information in this release was prepared and approved by James E Wallis, M.Sc. (Eng), P. Eng., a director of the company, who is a Qualified Person under National Instrument 43-101.
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