June 19 (SeeNews) - Canada-based mineral exploration and development company Erin Ventures has said it entered into a strategic partnership option agreement with a London-based commodity investment specialist to continue the development of the Piskanja boron project in Serbia.
Under the terms of the agreement, the London-based company has the right to make equity investments in two tranches, totalling $20.135 million, with the proceeds to be used for the advancement of Piskanja towards production, Erin said in a statement on Monday.
The London-based commodity investment specialist is currently engaged as an integral part of the initial public offering (IPO) process of a substantial mining complex and due to the sensitive nature and timing of this listing process, Erin is unable to divulge its identity at this time, the Canadian company said.
"This agreement provides an opportunity to significantly grow our shareholders’ value by creating a funding plan which matches our development milestones, allowing for the rapid advancement of our boron project, first to a feasibility study stage, and then into mine development and construction," the president of Erin, Tim Daniels, said in the statement.
In addition, Erin is building a formidable team that combines its mineral exploration and mine development expertise and extensive knowledge of Serbia, with the marketing, logistics and finance expertise of the London-based investor as an experienced global commodity trader that specializes in complex, niche commodities, Daniels said.
Piskanja is a high-grade boron deposit with an indicated mineral resource of 7.8 million tonnes, and an inferred resource of 3.4 million tonnes.