TIDMEUA
RNS Number : 6374V
Eurasia Mining PLC
04 December 2019
Eurasia Mining plc
("Eurasia" or "the Company")
West Kytlim update
SinoSteel update
Eurasia Mining, the palladium, platinum, rhodium, iridium and
gold producing company, operating the established West Kytlim Mine
in the Urals, and also the operator of the Monchetundra Project two
predominately palladium open pit deposits located 3km away from
Severonickel, one of the largest Norilsk Nickel's base metals and
PGM processing facility, near the town of Monchegorsk on the Kola
Peninsula, is pleased to confirm that the Company remains in
contact with all the relevant authorities in relation to its
license applications and would like to confirm that both
Monchetundra flanks and all the other applications are progressing
well and on schedule within the timing as defined by the applicable
laws. In particular Eurasia has just received the approval in
writing from Rosnedra, Russian agency for subsoil use in relation
to its Tipil license application. This is the final approval and
the appropriate license is to be issued in due course.
Tipil license, West Kytlim
As announced on 17 June 2019 the new Tipil license (24.5km(2) )
contains approximately 17 kilometres of river course and
sedimentary units proven to host PGM deposits at the West Kytlim
project. Geological data and historical mining information have
been analysed by the Company's geologists and compiled in a report
supporting the application, which includes exploration data
generated by the Company in its earlier exploration licence. The
application has been approved by the Russian federal bodies and
requires only a formal meeting of the local mines commission.
Further updates will be provided when that next step is
reached.
Sinosteel EPC contact update:
As Monchetundra's flanks application is progressing, the Company
keeps its EPCF contract in place with Sinosteel, which establishes
the route to the Monchetundra Project's development. Sinosteel is a
diversified and integrated base and industrial metals enterprise
and a major importer of iron ore to China. The Sinosteel EPC
financing covers 85% (or US$149.6M) of a total contract value of
US$176M.
A US$50M sub-contract is specified within the contract and is
assigned to Eurasia's 80% subsidiary TGK, or a sub-contractor of
its choosing, for engineering and pit development works in advance
of mining. Once activated, the contract provides for a payout of
the US$50M subcontract over a period of 36 months. The sub contract
has not yet been activated by Eurasia as it continues to consider
its options for the assets. In the meantime, the Company can
trigger the start of the Sinosteel EPC contract, at any time at its
discretion, until 2027. Accordingly, Monchetundra project remains
100% financed as previously announced. Further updates will be
provided in due course as appropriate.
Christian Schaffalitzky, Chairman at Eurasia commented: 'The
Directors are pleased that all our applications including the
Monchetundra flanks and West Kytlim Flanks applications are
progressing well and on schedule. And we look forward to the formal
license issue, which is in line with our strategy to expand the
production volumes at West Kytlim, to further increase our presence
in the West Kytlim area and aim to grow the mine to strengthen our
position as the largest alluvial operation globally. We believe we
are now established as a dominant player in the PGM space in the
region and look forward to scaling up our operation providing a low
cost PGM solution that is sustainable over potentially several
decades. We are also pleased to confirm that our Sinosteel EPCF
contract remains valid and as yet we are not exercising our right
for $50m payment option attributable to Eurasia's subsidiary TGK
while talks with third parties are ongoing.
Tipil Area
The Tipil license area is 24.5km(2) . With Tipil the total
ground licensed will stand at 95km(2) , which is inclusive of the
Flanks Area (71Km(2) ). These areas are adjacent to the current
21km(2) .
A graphic locating the above-mentioned areas within the West
Kytlim mine, and the location of the Tipil Area and the previously
approved Flanks Area is available on the Company's website at:
https://www.eurasiamining.co.uk/operations/west-kytlim
Shareholders are also encouraged to follow the progress at the
mine site through the Company's media channels including:
VIMEO: https://vimeo.com/user71951711
TWITTER: https://twitter.com/eurasiamining
VOX MARKETS: https://www.voxmarkets.co.uk/listings/LON/EUA/
Eurasia Mining Plc
Christian Schaffalitzky/ Keith Byrne
+44 (0)207 932 0418
WH Ireland Limited (Nomad and Joint Broker)
Katy Mitchell / James Sinclair-Ford
+44 (0)161 832 2174
First Equity Limited (Joint Broker)
Jason Robertson
Tel: +44 (0)20 7374 2212
Optiva Securities (Joint Broker)
Christian Dennis
Tel: +44 (0) 20 3137 1902
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014
Shareholders are reminded that the Company does have the
following media channels including:
https://vimeo.com/user71951711
https://twitter.com/eurasiamining
https://www.proactiveinvestors.com/LON:EUA/Eurasia-Mining-PLC/
https://www.voxmarkets.co.uk/listings/LON/EUA/
About Eurasia Mining PLC (LSE: EUA)
Eurasia Mining is a long-established palladium, platinum,
iridium, rhodium and gold focused production company quoted on the
London Stock Exchange AIM market, with an operating PGM mine in the
Ural Mountains palladium open pit deposit at Monchetundra. In
addition, Eurasia maintain an interest in the Semonovsky Gold in
Mine Tailings Project, an asset demonstrating potentially low-cost
new-term gold production potential.
Eurasia's two core projects are:
The West Kytlim operating mine (of which the Company owns 68%),
which is the largest alluvial platinum reserve in the world
currently, with 2,283 kilograms of raw platinum in reserves, and
resources and resource potential to a further 10 tonnes of raw
platinum. A single washplant has operated on site during 2018 and
2019, with further increases in production planned from multiple
washplants. The mine was previously contracted to generate cashflow
from which to finance further capitalisation of the asset. All
contractors were retired from the operation in September 2019 and
since then Eurasia has been operating on an owner operated (100% of
revenue) basis.
The Monchetundra Project (of which the Company owns 80%), has in
place (signed October 2016) an EPCF (Engineering Procurement
Construction and Financing) contract with Sinosteel, a state-owned
Chinese corporation focused on mining. This agreement fully
finances the Project through building of the 1.7m tonnes per annum
processing facility at the Monchetundra Project. This financing
contract can be drawn down at the option of the Company, and to
date the Company has not activated this option.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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