Erin Ventures Inc. (TSX-Venture: EV) reports that it has entered into a non-binding Letter of Intent, which outlines the terms of an Earn-in Option Agreement whereby Mountain Man Minerals Corp. (“MMM”), a private British Columbia company, may acquire the Deep River Gold Project from Erin. While Erin remains optimistic about the potential at Deep River, the sale of this asset will allow Erin to continue to focus on its highest priority projects.
MMM may earn 100% interest in Deep River in consideration for a total of $250,000 cash, $600,000 worth of shares, a $3 million work expenditure over 4 years, and an ongoing net smelter return (NSR) payment based on production.
The key terms of the LOI are as follows:
- MMM shall keep the property payments in good standing upon signing the Definitive Agreement.
- The total NSR (including Erin, landowners, and all other interested parties) for the Deep River Project will not exceed 5.25%.
- MMM may acquire a 100% ownership in the Project by way of payment of $850,000. The schedule of payment is as follows:
i. When a Definitive Agreement is signed between MMM and Erin, MMM will pay $50,000 cash to Erin to secure an exclusive 6-month option to acquire 100% of the Property. This $50,000 accrues towards the $850,000 purchase price of the Project.
ii. Concurrent with obtaining a listing on the TSX-V Exchange, MMM shall pay $100,000 in cash and $300,000 in MMM common shares to Erin. The price per share will be equal to the price of MMM’s current private placement offering. These shares will be subject to a 12 month hold.
iii. On or before the one year anniversary of listing MMM shall pay an additional $100,000 in cash and $300,000 in MMM common shares to Erin. The price per share will be issued to EVI at the 20-day moving average trading price, but not less than $0.10 per share, with 1/3 of the shares having a 4 month hold, 1/3 of the shares having a 12 month hold, and 1/3 of the shares having an 18 month hold.
iv. Upon fulfilling the cash payment of $250,000 and Share Payment of $600,000, and all work commitments of $3 million, MMM shall be deemed to have earned and be vested with 100% interest in the project (subject to the NSR).
v. MMM will commit a minimum of $500,000 in exploration expenditures in the first year and in years two through four MMM must incur an additional $2,500,000 in exploration expenditures.
On behalf of the Board of Directors,
Blake Fallis, General Manager
The technical information in this release was prepared and approved by James E Wallis, M.Sc. (Eng), P. Eng., a consultant to the company, who is a Qualified Person under National Instrument 43-101.
For further information, please contact:
Erin Ventures Inc. Canada
Blake Fallis, General Manager TSX Venture: EV
Phone: 1-250- 384-1999 or 1-888-289-3746 USA
Erin’s Public Quotations:
TSX Venture: EV
SEC 12G3-2(B) #82-4432
Berlin Stock Exchange: EKV
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
Forward Looking Statements
This release contains forward looking statements. The words “believe,” “expect,” “feel,” “plan,” “anticipate,” “project,” “could,” “should” and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties including, without limitation, variations in estimated costs, the failure to discover or recover economic grades of minerals, and the inability to raise the funds necessary, changes in external market factors including commodity prices, and other risks and uncertainties. Actual results could differ materially from the results referred to in the forward-looking statements.