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LONDON (Alliance News) - Eurasia Mining PLC on Wednesday said it has secured the mining permit for Monchetuntra platinum group metals and base metals mine located in north-west Russia.
The permit fully authorises mine construction and extraction at two open pit locations at Mochetundra, which has approximately 2 million ounce palladium equivalent reserve and resource in addition to significant nickel and copper revenue streams.
Eurasia Mining said that, as a guideline based on November 2018 spot metal prices, Monchetuntra has an approximately USD2.1 billion in-situ total reserve and resource value.
An engineering, procurement, construction, and financing contract is already in place with Sinosteel Corp, a Chinese state-owned infrastructure project company, for 85% of the USD176 million contract value. A further USD50 million sub-contract within this and is assigned to Eurasia Mining's Terskaya Gornaya Kompany subsidiary, or a sub-contractor of its choosing for engineering and pit development.
"This is the start of a new chapter for the company and its ambitions. Our commercial arrangements regarding the Monchetundra Project development can now be realised at this large low cost PGM and base metals project," said Eurasia Mining Managing Director & Executive Chairman Christian Schaffalitzky.
"As regards funding requirements, our arrangements with Sinosteel mean the company can move forward with the project's development without recourse to further dilution of its shareholder base," Schaffalitzky added.
Eurasia Mining intends to develop Monchetuntra alongside its West Kytlim platinum group metals and gold mine, also in Russia.
"It is our intention to offer specific timelines and objectives for the projects development through 2019 in due course," said Schaffalitzky.
Shares in Eurasia Mining were up 3.1% at 0.65 pence on Wednesday.