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.
Summary of the Piskanja boron property
The Piskanja property has a partially proven and probable colemanite-ulexite resource of approximately seven million tonnes of 39 per cent B2O3 (boron), based upon historic drill data (non NI43-101 compliant).The deposit is open both to the south and the east. Evaluation of the drill-hole data by Erin’s technical advisers indicate 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.
On behalf of the Board of Directors,
Blake Fallis, General Manager
There can be no assurance given that any legal or other action currently being pursued by Erin regarding this matter will be successful.
The technical information in this release was prepared by James E Wallis, M.Sc. (Eng), P. Eng., a consultant to Erin, who is a Qualified Person under National Instrument 43-101.
Erin‘s Public Quotations:
TSX Venture: EV
SEC 12G3-2(B) #82-4432
Berlin Stock Exchange: EKV
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, which speak only as of their dates. 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 for the continued operations of the Company, 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.
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