Erin Ventures Inc. (EV) has signed a letter of intent (LOI) with Osmose Limited for a proposed $ 35.3 million in funding to develop the Piskanja Boron Project in Serbia Osmose agreed to provide $ 3.55 million plus €22 million in three tranches Proceeds would help develop and advance the project, as well as support Erin Ventures’ Serbian subsidiary, Balkan Gold The completion of this transaction is still subject to several conditions, including signing a definitive agreement Erin Ventures Inc. (EV) is up 7.14 per cent, trading at $ 0.07 per share as of 1:33 p.m. EST
Erin Ventures (EV) has signed an LOI with Osmose Limited for a proposed $ 35.3 million to develop the Piskanja Boron Project in Serbia.
As outlined in the letter of intent, Osmose, a UK-based investor, agreed to provide $ 3.55 million plus €22 million in three tranches. If Osmose fulfills the terms of each tranche, it will hold the exclusive right to fund the following tranche.
Erin Ventures intends to continue discussions with other interested potential partners until Osmose has completed all three funding tranches.
Upon completion of a definitive agreement, Osmose has agreed to subscribe to a non-brokered private placement of Erin Ventures shares for a total of $ 3.55 million for $ 0.10 per unit.
Each unit includes one common share and one share purchase warrant with an exercise price of $ 0.22 per share and a two-year expiry period. Proceeds will be used to complete the Piskanja Project’s feasibility study and working capital.
Additionally, Osmose has agreed to provide two tranches of funding at the project level within Balkan Gold, Erin Ventures’ Serbian operating company, to advance the Piskanja Project towards production.
It will be done by paying €10 million within 30 days of Erin Ventures’ completion of a Serbian-compliant feasibility study, in return for a 20 per cent undivided interest in Balkan Gold, as the second funding tranche. The proceeds will support the project’s development and Balkan Gold’s working capital.
Another €12 million will be due within 30 days of completing the mine and processing designs and blueprints for the Piskanja Project for an additional 25 per cent undivided interest in Balkan Gold as the third and final funding tranche. This funding will also develop the project and support Balkan Gold.
The completion of this transaction is still subject to several conditions, including signing a definitive agreement.
Erin Ventures Inc. (EV) is up 7.14 per cent, trading at $ 0.07 per share as of 1:33 p.m. EST.
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