Erin Ventures Inc. [TSX-V: EV] reports that its wholly owned, Serbia based subsidiary Balkan Gold, is currently in discussions with Serbian authorities regarding a potential commercial contract for the Pobrdje boron mine. The Pobrdje boron mine is licensed and operated by the Serbian state owned company Ibar Mines, and is located approximately 1.5 km from Balkan Gold’s Piskanja boron project in southern Serbia. Under the proposed terms of the agreement, Balkan Gold would provide the capital, technical expertise and management oversight required to refurbish, upgrade and operate the Pobrdje mine at a capacity of approximately 30,000 tonnes of colemanite per year until depletion. In return, Balkan Gold would have the exclusive rights to all of the colemanite produced at the mine, at a fixed price, for the life of the mine.
Cautionary note: There can be no assurance given that the proposed agreement will be successfully consummated, or that the final arrangement will not be materially different from that which is currently contemplated. However, the interested parties understand the benefit of this agreement to all of the various stakeholders involved, and are working earnestly to complete the transaction.
“If completed, this would be a significant development for Erin, aiding in the de-risking of the development of our Piskanja boron project”, said Tim Daniels, President of Erin Ventures. “The potential cash flow resulting from this agreement could contribute materially towards the capex required to construct a mine at Piskanja, thereby helping to reduce the dilution that Erin’s shareholders will be certain to suffer if Piskanja’s development is to be funded solely through outside sources. Additionally, the Pobrdje project would be an important pilot project for Erin, allowing us in the short term to develop market share, train workers, and gain technical expertise in the mining and processing of boron, all of which are significant benefits that could then be applied to the future development and operation of our Piskanja project.”
Erin will release further information on this matter if, as, and when a binding agreement has been signed.
On behalf of the Board of Directors,
Blake Fallis, General Manager
About Erin Ventures Inc.
Erin Ventures Inc. is an international mineral exploration and development company with boron assets in Serbia and gold assets in North America. Headquartered in Victoria, B.C., Canada, Erin shares are traded on the TSX Venture Exchange under the symbol “EV”. For detailed information please see the Erin website at www.erinventures.com or the Company filed documents at www.sedar.com.
Piskanja is a high-grade boron deposit with a NI 43-101 compliant mineral resource of 5.6 million indicated tonnes (30.8% B2O3), in addition to 6.2 million inferred tonnes (28.8% B2O3).
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
645 Fort Street, Suite 203
Victoria, BC V8W 1G2
Erin 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.