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LONDON (Alliance News) - Eurasia Mining PLC on Tuesday said has signed an engineering, procurement, and construction contract with Sinosteel Corp in order to advance its Monchetundra project in northwest Russia.
Both the contract and an associated mine finance package have been signed with Chinese firm Sinosteel, discussions having been ongoing since a mining permit for around 2 million ounces of platinum, palladium and gold was awarded in November.
The engineering, procurement, and construction contract financing covers 85% of USD149.8 million of the USD176 million total contract value. A USD50 million sub-contract is included in the contract and assigned for engineering and pit development works ahead of mining.
Central Kola Expedition, Eurasia's partner on the project, have begun work on a detailed project report, which must be submitted and approved within one year of the mining permit being issued.
Eurasia Chair Christian Schaffalitzky said: "We are delighted to advance the Monchetundra project. The details include not only the engineering components, but also the financing and legal documentation. We will be busy over the coming months developing our plans with Sinosteel for the mine's start up and expected move towards production."
Shares in Eurasia Mining were up 3.3% at 0.54 pence on Tuesday afternoon.