Business
RETRANSMISSION: Erin Ventures Announces Letter of Intent with Strategic Funding Partner
VICTORIA, BC / ACCESSWIRE / January 31, 2023 / Erin Ventures Inc. ("Erin") (TSXV:EV), an interna...
About this update from Boron One Holdings Inc
[{"type":"text","content":"RETRANSMISSION: Erin Ventures Announces Letter of Intent with Strategic Funding PartnerVICTORIA, BC / ACCESSWIRE / January 31, 2023 / Erin Ventures Inc. (\"Erin\") (TSXV:EV), an international mineral exploration and development company, is pleased to report that it has signed a Letter of Intent (the \"LOI\") with a London based strategic investor, Osmose Limited (\"Osmose\") to provide equity funding for the development of Erin's Piskanja Boron Project. In accordance with the LOI, Osmose has agreed to provide funding which totals CAD$3,550,000 plus Euro22,000,000, in three tranches (the \"Funding\").The terms of the LOI afford Osmose the exclusive right to provide the Funding, subject to certain terms and trigger deadlines for each tranche being met by Osmose. If, and only if Osmose fulfills the terms of each tranche, will it retain the exclusive right to fund the following tranche. No exclusivity will exist until Osmose completes the first tranche funding round. Erin intends on continuing its ongoing discussions with other interested, potential strategic partners until such time as Osmose has completed all three funding tranches.The key terms in the LOI are:Upon completion of a definitive agreement (which is based upon the framework found in the LOI), Osmose has agreed to subscribe to a non-brokered private placement of Erin's shares for a total of CAD$3.55million priced at CAD$0.10 per unit, with each unit comprised of 1 common share and 1 share purchase warrant (with an exercise price of CAD$0.22 per share, and a 2-year expiry), as the first funding tranche. Osmose undertakes to exercise the warrants, if and only if, in doing so, Osmose remains below 19.9% ownership of Erin. Use of proceeds include completion of the Piskanja Project Feasibility Study and working capital.Additionally, Osmose has agreed to provide two tranches of funding at the project level (within Balkan Gold, Erin's wholly owned Serbian operating company), to advance the Piskanja Project towards production, as follows:i) Euro10,000,000 within 30 days of Erin's completion of a Serbian-compliant feasibility study, in return for a 20% undivided interest in Balkan Gold, as the second funding tranche. Use of proceeds include Piskanja Project development and Balkan Gold working capital.ii) Euro12,000,000 within 30 days of Erin's completion of mine and processing d...