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VANCOUVER,
BC, Aug. 10, 2023 /CNW/ - Eros Resources
Corp. ("Eros") (TSXV: ERC) and Lincoln Gold Mining Inc.
("Lincoln") (TSXV: LMG) are pleased to announce that the
companies have signed a non-binding Letter of Intent
("LOI") to begin negotiations for Lincoln to acquire the Bell Mountain project
from Eros. As a result of the proposed transaction, Eros. will
acquire shares in Lincoln.
The leadership team at Eros is optimistic about
the potential outcomes of this strategic move, believing that the
transformation into a holding company and the collaboration with
Lincoln will unlock new growth
opportunities and further enhance the company's position in the
mining sector.
The Bell Mountain project is located in Churchill
Country, Nevada approximately 3
hours drive from Reno. Bell
Mountain has excellent access and is in a mining friendly County.
Details of the purchase arrangement are being negotiated at present
and should be finalized shortly. Lincoln is very familiar with the project as
it was part of Lincoln's group of
projects several years ago, until it was optioned and sold to Eros.
The Bell Mountain project is made up of 174 unpatented lode claims
and is under the jurisdictions of the Bureau of Land Management and
the State of Nevada. The property
is 100% controlled by Eros and has a gold and silver resource. The
Bell Mountain project has all major permits in place to advance it
through construction and into operations.
Lincoln believes
that the two projects, the Bell Mountain and the Pine Grove Pine
Grove combined will make for an attractive mining operation for a
number of reasons. Lincoln's
Pine Grove project is located in
Lyon County, only a two-hour drive
from the Bell Mountain project. The properties are close enough in
distance so that one team of management, engineering,
environmental, cultural, and administrative personnel could operate
both properties and one recovery plant could handle both projects.
Both projects are advanced-stage gold exploration projects with
established resources and both projects have significant
exploration potential. All these factors will help reduce overall
capital and operating costs and will make for an exciting operating
plan.
Detailed plans for starting operations are being
worked on. With the excellent exploration potential at both
operations Lincoln believes that
there is a chance to increase the gold/silver resources at both
properties leading to increased gold production and mine
life.
This enhanced mine life provides investors with reduced risk, as
there will be an opportunity to utilize capital infrastructure over
a longer time frame. The strategic utilization of capital
infrastructure not only minimizes financial risk but also
strengthens the operational resilience of the combined project.
The extended operational horizon aligns with Eros
Resources Corp.'s commitment to responsible and sustainable mining
practices while capitalizing on favorable market conditions.
Additionally, the allocation of funds for this
venture has been meticulously considered. Lincoln will be responsible for arranging the
capital required to bring Bell Mountain into production, minimizing
the financial burden on Eros. This strategic allocation of funds
underscores Eros' dedication to prudent resource management and its
focus on generating value for its shareholders.
As negotiations progress between Eros Resources
Corp. and Lincoln Gold Mining Inc, both companies will work
diligently to reach an agreement that serves the best interests of
all stakeholders. The proposed transaction is subject to regulatory
approvals and customary closing conditions.
About Lincoln
Lincoln Gold Mining Inc. is an advanced-stage
gold mine exploration and development company holding a 100%
interest in the Pine Grove Gold Project, in the Walker Lane
structural zone of western Nevada.
The Company has prepared a preliminary economic assessment of the
Pine Grove Gold Project pursuant to National Instrument 43-101 -
Standards of Disclosure for Mineral Projects. Lincoln is working with the U.S. Forest Service to secure the permits necessary
to develop the Pine Grove Gold Project into a low-cost heap leach
operation with a high-grade gravity circuit.
Lincoln holds
its interests in the US projects through its wholly owned
subsidiaries, Lincoln Resource Group Corp. and Lincoln Gold US
Corporation, both Nevada
corporations.
About Eros
Eros Resources Corp. is a Canadian public company
listed on the Toronto Venture Exchange. The Company's business
objective is the identification, acquisition, and exploration of
advanced-stage projects with a North American focus. In addition,
the Company plans to make strategic investments with a global focus
on a diverse commodity base. Eros management's expertise supports
this strategy.
Forward Looking
Statements
This release includes forward-looking
statements regarding EROS and its business. Such statements are
based on the current expectations and views of future events of
EROS's management. In some cases the forward-looking statements can
be identified by words or phrases such as "may", "will", "expect",
"plan", "anticipate", "intend", "potential", "estimate", "believe"
or the negative of these terms, or other similar expressions
intended to identify forward looking statements. The
forward-looking events and circumstances discussed in this release
may not occur and could differ materially as a result of the
failure to complete the amendment of the Warrants, known and
unknown risk factors and uncertainties affecting EROS, including
risks regarding the resource industry, economic factors and the
equity markets generally and many other factors beyond the control
of EROS. No forward-looking statement can be guaranteed.
Forward-looking statements and information by their nature are
based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or industry results, to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statement or
information. Accordingly, readers should not place undue reliance
on any forward-looking statements or information. Forward-looking
statements speak only as of the date on which they are made and
EROS undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as required by applicable
securities laws.
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.
SOURCE Eros Resources Corp.