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LONDON (Alliance News) - Russia-focused miner Eurasia Mining PLC on Monday said it has signed a head of terms with OOO Metallurg Complect to secure the right to negotiate to buy up to 67% of the Semenovsky gold tailings project.
The heads of terms provides for a six-month exclusivity period which will allow the company to complete technical study on the project, along with sampling, metallurgical testing and general due diligence.
Eurasia said early stage, internal work it has carried out indicates a total gross revenue of around USD57.0 million over an 8.5-year mine life at the project.
"We are delighted to secure this opportunity which, if successfully implemented, will see Eurasia Mining become a gold producer to complement the planned 2016 platinum production at the West Kytlim project," said Eurasia Managing Director Christian Schaffalitzky.
In addition, fellow AIM-listed natural resources investment company Metal Tiger PLC has secured an option to participate in the project alongside Eurasia. It will pay USD25,000 upfront to Eurasia to secure an option to take part in the project and will pay another USD75,000 if the option is taken up.
"By securing this three-month option, Metal Tiger has the time to review the proposals in further detail and potentially opt-in to this project. By doing so we will expose Metal Tiger shareholders to the same early gold production, sharing the financial and operational risks and rewards with Eurasia," said Metal Tiger Chief Executive Cameron Parry.
Shares in Eurasia were up 7.0% to 0.615 pence on Monday, while Metal Tiger shares were up 1.4% to 0.989p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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