(Alliance News) - Eurasia Mining PLC on Tuesday said good progress is being made at the Monchetundra mine, including the recent award of a construction contract.
Chinese firm Sinosteel has been awarded the engineering, procurement, and construction deal, with Eurasia currently working to get the project into production after the granting of a mining licence.
Sinosteel is to provide project financing to Eurasia, in the form of a USD149.5 million 10-year loan facility at six-month LIBOR plus 3.5%.
Monchetundra, which contains two million ounces of platinum and palladium, is located some 130 kilometres from Murmansk, not far from Russia's border with Finland.
"Our team and our contractors at Central Kola Expedition continue to progress our plans for the development of this palladium dominated open pit mine. It is our intention to significantly increase activity on site over the next six to 12 months to accomplish activities stipulated by the EPC with Sinosteel as TGK's responsibilities to initiate the payments from Sinosteel to TGK," said Chair Christian Schaffalitzky.
"We look forward to launching this mine walking in the steps and learning from our experience from the successful mine launch at West Kytlim."
Shares were 2.4% lower on Tuesday at a price of 0.45 pence each.