VANCOUVER, March 24, 2020 /CNW/ - Eros Resources Corp.
(TSX-V: "ERC" "Eros" or the "Company") is pleased to provide an
update on the status of the Qualifying Transaction of Owl Capital
Corp., previously announced on April 24,
2019 and December 19th, 2019.
Owl Capital Corp. has since changed its name to Southern Empire
Resources Corp ("Southern Empire"; TSX-V: SMP).
Southern Empire Resources Corp. has closed its Capital Pool
Company ("CPC") Qualifying Transaction by acquiring a 75% interest
in the Oro Cruz Gold Project located in California, an 85% interest in the Eastgate
Gold Project located in Nevada,
USA and a 4.93% undiluted equity interest in Bullfrog Gold
Corp. ("Bullfrog"), an exploration stage company listed on the
Canadian Securities Exchange and OTC Markets, collectively, the
"Gold Assets".
In consideration of the Gold Assets acquired Southern Empire
will issue common shares to Eros as follows:
- 2,901,275 shares with respect to the acquisition of a 45%
interest in the Eastgate Gold Project
- 8,545,000 shares with respect to the acquisition of an
exclusive option to acquire a 37.5% interest in the Oro Cruz Gold
Project;
- 2,856,665 shares with respect to the acquisition of 8,750,000
shares and 7,750,000 share purchase warrants in the capital of
Bullfrog.
All of these shares will be subject to the escrow requirements
set forth in TSX Venture Exchange Policy 5.4 – Escrow, Vendor
Consideration and Resale Restrictions whereby 10% of the escrowed
shares will be released on the initial listing date and 15% of the
escrowed shares will be released each six month period
thereafter.
Eros has further agreed to sell a total of 5,000,000 escrowed
common shares of Southern Empire to unrelated individuals for cash
consideration. The proceeds from this sale will be used to
make tax advantaged investments in either flow-through shares or
direct property interests in Canadian gold exploration
properties. These purchases will be subject to TSX Venture
Exchange Policy 5.4 – Escrow, Vendor Consideration and Resale
Restrictions.
Eros Investment in Southern Empire
Eros, subsequent to the escrow share sale discussed above, holds
9,302,940 common shares, which represents an approximate 22% equity
interest. These shares are held for investment purposes. The
Company may increase or decrease its position as circumstances
require. This fits the Company's objectives of increasing the
Company focus in Canadian Resource opportunities.
On Behalf of the Board of Directors of EROS Resources
Corp.
Ronald K. Netolitzky
President & CEO
Cautionary Notice on Forward-Looking Statements Information set
forth in this news release contains forward-looking statements that
are based on assumptions as of the date of this news release. These
statements reflect management's current estimates, beliefs,
intentions and expectations. They are not guarantees of future
performance. Southern Empire cautions that all forward looking
statements are inherently uncertain and that actual performance may
be affected by a number of material factors, many of which are
beyond Southern empire's control.
Such factors include, among other things: risks and
uncertainties relating to Southern Empire's limited operating
history and the need to comply with environmental and governmental
regulations. Accordingly, actual and future events, conditions and
results may differ materially from the estimates, beliefs,
intentions and expectations expressed or implied in the
forward-looking information. Except as required under applicable
securities legislation, Southern Empire undertakes no obligation to
publicly update or revise forward-looking information.
NEITHER 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.