Business
Acquisition of 50% of UAP
Acquisition of 50% of UAP.
About this update from Eurasia Mining Plc
[{"type":"text","content":"\n \nRNS Number : 1551K Eurasia Mining PLC 20 June 2014 \n \n\n \nEurasia Mining plc\n \n(\"Eurasia\" or the \"Company\")\n \nAcquisition of 50% of Urals Alluvial Platinum Limited\n \nEurasia Mining plc, the platinum group metals and gold exploration and development company, is pleased to announce that it has entered into an agreement pursuant to which its wholly owned subsidiary Eurasia Investments Limited (\"EIL\") will acquire, from Rustenburg Platinum Mines (Cyprus) Limited (\"RPM Cyprus\") (indirectly a wholly owned subsidiary of Anglo American Platinum Limited (\"Anglo American Platinum\")), the remaining 50 percent of Urals Alluvial Platinum Limited (\"UAP\") which it does not already own (the \"Acquisition\"). The transaction will provide EIL with a 100 percent interest in UAP which holds its PGM projects in Russia, including the 171 square kilometre license area at West Kytlim which contains near to production-ready State approved platinum reserves with significant additional resources.\n \nThe agreement is conditional on RPM Cyprus and members of the Anglo American Platinum group obtaining South African exchange control approval. A further announcement will be made when the Acquisition completes.\n \nBackground to and reasons for the Acquisition\n \nRPM Cyprus and EIL entered into a joint venture agreement (\"JVA\") in respect of UAP in August 2003 which governed the relationship between the parties and also established UAP in Cyprus as the operating company for, inter alia, alluvial platinum exploration in respect of licenses in the Ural Mountains in the Russian Federation, a region which historically has produced an estimated 500 tonnes of alluvial Platinum. Eurasia was appointed as Manager of UAP. \n \nInitially exploration work focused on a number of projects, but the key project identified as having good potential was West Kytlim in the Sverdlovsk Oblast. A license over this area was granted in 2005 to the Russian holding company ZAO Kosvinsky Kamen, with UAP holding a 75 percent interest and a local partner, Yuzhno-Zaozersky Priisk, holding the remaining 25 percent. Exploration drilling, trenching, pitting and bulk sampling has been carried out over much of the license area since that time. \n \nIn parallel with work in the Ural Mountains, several new proje...