Eurasia Mining spin-off seeks $2.2m

AIM-quoted Eurasia Mining is placing a 55% stake in the Kamushanovskoye uranium project in Kyrgyzstan into Energy Resources Asia (ERA), which it owns jointly with Afrasia Mining & Energy Investment Holdings. Optiva Securities is raising $2.2m for ERA so this will dilute Eurasia's shareholding. The fundraising will provide the cash to acquire the project and make progress with it. Eurasia has already paid $150,000 and ERA will have to pay a further $850,000 to gain a 10% stake in the Kyrgyzstan project. A further payment of $50,000 plus 12 instalments of $10,000 each will pay for a further 45% stake. ERA will refund Eurasia the $150,000 payment when it completes its fundraising by the end of March. Eurasia should retain a 39% stake in ERA and will provide management support. Afrasia will own 32% of ERA and it intends to transfer ownership of its subsidiary NuRanium to ERA, which will provide a further pipeline of potential projects.