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posted on
Oct 23, 2008 09:29AM
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ERIN VENTURES INC. (“Erin”)
NEWS RELEASE - For Immediate Distribution
Erin Advances Serbian Boron Property Settlement Discussions
October 23, 2008
Erin Ventures Inc. (TSX-Venture: EV) reports that members of its management
have recently met with the Republic of Serbia’s newly appointed Minister of
Mining and Energy, Prof. Petar Skundric, regarding Erin’s legal dispute over
the Piskanja boron property, located in southern Serbia. Prof. Jujic, a
member of Erin’s board of directors, is a professional colleague and
long-time acquaintance of both Dr. Skundric, and the current Serbian Prime
Minister, Mirko Cvetkovic, who worked for many years in the Mining Institute
of Serbia.
As previously reported, Erin is seeking monetary compensation for losses and
certain damages, totaling approximately US$15 million. This legal action is
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.
In this recent meeting, the Minister of Mining and Energy expressed his
desire to see this matter resolved by means other than legal action. At the
request of the Minister, Erin has submitted a proposal to settle the legal
dispute, which includes the following information: 1) An outline of the
issues and events which led to Erin’s legal action; 2) Details of mining
projects in Serbia, including but not limited to the Piskanja boron
property, that Erin may have an interest in pursuing at this time; and 3)
What actions Erin demands 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.
Subsequently, Dr Jujic has received information indicating that the mineral
concession on the Piskanja boron property is in the process of being
returned to the Serbian government, although Erin has not received any
official confirmation of this from the Serbian government at this time.
Summary of Erin’s legal action
Previously, Erin reported that it had commenced legal action against
Elektroprevreda-Serbia (“EPS”), the Serbian government’s wholly owned
national power corporation, whereby Erin is seeking monetary compensation
for losses and certain damages, totaling approximately US$15 million. This
legal action, the first step in an anticipated larger litigation strategy,
is the result of Erin’s contention that it holds a valid joint venture
contract with EPS to develop the Piskanja boron property in Serbia 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. This action is being adjudicated by
the Serbian International Arbitration Court. The next step in the process is
the calling of witnesses for questioning by the Arbitration Court.
Further legal action, if taken by Erin, will seek substantial compensation
for lost potential profits from the boron property, and other damages apart
from the initial US$15 million claim; may name Elektroprevreda and/or other
related, responsible parties; and may be conducted within Serbia and/or
other international venues.
Summary of the Piskanja boron property
The Piskanja property has a partially drill proven and probable
colemanite-ulexite reserve of approximately seven million tonnes of 39 per
cent B2O3 (boron). The deposit is open both to the south and the east.
Evaluation of the drill hole data clearly indicates that the Piskanja
deposit has the potential of hosting additional significant borate reserves
that would place it on a level with known world-class borate deposits such
as those in California and Turkey.
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.
Further information regarding this matter will be provided when available.
On behalf of the Board of Directors,
Blake Fallis, General Manager
The technical information in this release was prepared by James E Wallis,
M.Sc. (Eng), P. Eng. a consultant to the Corporation, who is a Qualified
Person under National Instrument 43-101.
Cautionary Note:
There can be no assurance given that any legal or other action currently
being pursued by Erin regarding this matter will be successful.
For further information, please contact: Erin’s Public Quotations:
Erin Ventures Inc. Canada
Phone: 1-250- 384-1999 or 1-888-289-3746 TSX Venture: EV
www.erinventures.com USA
SEC 12G3-2(B) #82-4432
OTCBB: ERVFF
Europe
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.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE
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