(Alliance News) - Eurasia Mining PLC said Tuesday the Russian Ministry of Defense has approved the Monchetundra Flanks application, although final approval from SevZapNedra, the regional licensing body, is still awaited.
Eurasia Mining shares were up 11% in London at 2.64 pence each on Tuesday.
The platinum and gold miner said the Russian military approval is an important step in obtaining the Flanks licence, and the company is "happy to confirm" that the Flanks application process is progressing as planned and it expects to receive the license "in due course".
Monchetundra has state-approved reserves and resources of about 1.9 million ounces of platinum and palladium, Eurasia Mining said. It is located some 130 kilometres from Murmansk, not far from Russia's border with Finland.
Research in Russia found that the whole of Monchetundra, which includes areas where Eurasia does not currently have a licence for, has a potential 40 million ounces of platinum group metals.
Christian Schaffalitzky, chair of the company, said: "The directors are pleased that all our applications including the Monchetundra Flanks are progressing well and on schedule."
"We look forward to the formal license issue, which is in line with our strategy to become one of the largest alluvial platinum group metals operations globally," Schaffalitzky said.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Eurasia Mining (EUA)