Eurasia Mining Regulatory News (EUA)

Eurasia Mining plc (AIM: EUA) 

("Eurasia" or the "Company")

 Approval of Monchetundra Mining Permit by FSB & MOD

Eurasia Mining plc (AIM: EUA) ("Eurasia Mining" or the "Company") the PGM (Platinum Group Metals) and Gold mining company, now in production of PGM at the second largest alluvial open pit PGM mine globally, is pleased to announce approval of the Monchetundra mine permit application by two key federal agencies; the Federal Securities Board (FSB) and Ministry of Defence (MOD).

The mine permit application, for the 2 million-ounce PGM Monchetundra project now progresses to ministerial level, where it is reviewed by the Ministry of Economic Development (MOED) and Ministry of Natural Resources, before progressing to the office of Prime Minister Dmitry Medvedev for final approval. The application process remains on track for a successful grant by late summer.

Highlights

- FSB and MOD approval of the Monchetundra mine permit application

- Mine permit on schedule for final approvals

- Application now with Ministry of Economic Development and Ministry of Natural Resources

- Monchetundra project contains state approved reserves and resources of 2 million ounces PGM with a Palladium:Platinum ratio of 2:1 and an in-situ value of approximately US$2bn(an internal calculation based on London Metal Exchange January 2018 spot metal prices. See announcements dated 31 May 2017 and 02 February 2018).

- Off take agreements prepared by both Sinosteel and Glencore International, to be finalised and executed at the Company's discretion, although there can be no guarantee that these will be executed.

Christian Schaffalitzky commented: 'A very welcome development for our Monchetundra mining license permit, which remains on schedule. We are buoyed by passing this key step en route to a mine permit and wish many thanks to our team in Russia and the administrators who see the merit in this major mining opportunity for the town of Monchegorsk and the Russian PGM industry generally.

We have also been working continuously in the background on the technical aspects of the project's resource and metallurgy, including ore scheduling exercises. Discussions are ongoing with a wide range of potential stakeholders regarding the projects route to commercial development, including continuing discussions on off-take agreements, refinery contracts, and discussion with our Engineering Procurement Construction and Finance partner Sinosteel. The Monchetundra Project is very much a focus of the company's business, alongside the now full scale production of PGM at our West Kytlim mine.'

Further details on the Monchetundra Project

Monchetundra is Eurasia's 80% owned 2 million-ounce PGM (Reserve + Resource) project near the town of Monchegorsk on Kola Peninsula. A feasibility study and reserves estimate for the contained reserves and resources achieved state approvals in May 2017 (see announcement dated 31 May 2017). Subsequently, a discovery certificate, which guarantees mining rights to the holder, was issued in July 2017 for the reserves and resources contained within two open pittable locations, Loipishnune and West Nittis. A mining license application proceeded directly on receipt of the discovery certificate and later achieved provisional approval from Rosnedra, the Russian ministry for subsoil use. The application was later reviewed by the Federal Anti-Monopoly Service before being forwarded to the FSB and MOD has now been approved by both the Federal Securities Service and Ministry of Defence. The Federal Anti-Monopoly Service, also reviewed the application before forwarding to the FSB and MOD.

Currently, state approved reserves and resources within the Monchetundra Project comprise Russian standard C1 and C2 categories of 55.9 tonnes (about 2 million ounces) palladium equivalent (predominantly palladium) at two open-pittable locations, West Nittis and Loipishnune. These open pits also contain significant gold and base metal credits including 28,124 tonnes of copper, 30,410 tonnes of nickel and 2 tonnes of gold. The PGM resources are palladium rich with an average palladium to platinum ratio of 2:1. Directors believe the project to be unique globally in being lead by high palladium grades, and that it represents a significant lower cost open pit mining operation which compares favourably to the relatively expensive underground operations in South Africa, the dominant player in the global PGM market.

Engineering Procurement Construction and Financing (EPCF) Contract

As previously announced, an EPCF (Engineering, Procurement, Construction & Finance) agreement is already in place with Sinosteel, a Chinese state owned major infrastructure project group. 85 per cent (or US$149,600,000) of the contract value has been arranged as debt-based by Sinosteel - this element of plant construction costs will remain on the Sinosteel balance sheet until such time as the plant is operating at full capacity and to designed specification. A further US$50,000,000 sub-contract has been assigned by Sinosteel to Eurasia's subsidiary Terskaya Gornaya Kompany(TGK) for the development of the two open pits in preparation for mining and may be drawn down in advance of the main mine construction.

Discussions continue with other third-party service providers regarding the running of the mine at Monchetundra. The Company hopes to emulate the contract mining arrangement utilised at West Kytlim by contracting the mining operation to a reputable international specialist company with experience in Russia, while maintaining control of the project, for a percentage of gross revenue.

Consent for release

Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the Company. He has reviewed the update and consents to the inclusion of the exploration information in the form and context in which it appears here. He is a Competent Person for the purposes of the reporting of these results.

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

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About Eurasia Mining PLC (LSE: EUA)

Eurasia Mining is a long-established platinum and gold focused production company quoted on the London Stock Exchange AIM market, with an operating mine in the Ural Mountains and a USD$2 billion dollar valued in-situ multi-commodity deposit at Monchetundra (see announcement dated 31 May 2017). In addition, Eurasia maintain an interest in the Semonovsky Gold in Mine Tailings Project, an asset demonstrating potentially low-cost new-term gold production potential.

Eurasia's two core projects are:

The West Kytlim operating mine (of which the Company owns 68%), which is the second largest alluvial platinum reserve in the world currently, with 2,283 kilograms of raw platinum in reserves, with resources and resource potential to a further 10 tonnes of raw platinum;

The Monchetundra Project (of which the Company owns 80%), has state approved reserves and resources of 2 million ounces of palladium equivalent (predominantly palladium, and includes 28,124 tonnes of copper and 30,410 tonnes of nickel), resulting in a total in-situ metal value of approximately USD$2 billion, before metal recoveries and all costs. Eurasia has in place (signed October 2016) an EPCF (Engineering Procurement Construction and Financing) contract with Sinosteel, a state owned Chinese corporation focused on mining.