Eurasia Mining PLC
21 December 2004
EURASIA SELLS SOUTH AFRICAN MINERAL INTERESTS FOR £480,000
Eurasia Mining plc is pleased to announce the sale of its mineral interests in
South Africa as it sharpens its focus on its Russian interests.
The South African assets are being sold to Nkwe Platinum Limited, for a total
consideration in cash and shares of approximately £480,000. The consideration
comprises £225,000 in cash together with 800,000 shares in Nkwe, a platinum
exploration company listed on the Australian Stock Exchange.
Eurasia Managing Director Christian Schaffalitzky said: 'This will provide
additional working capital for our Russian operations as they grow in
importance. We expect to complete our new acquisitions on the Kola Peninsula
shortly so that we can advance the early successes already obtained there'.
Last July, Eurasia announced encouraging results from early exploration work on
two of three licence areas it has negotiated on the Kola Peninsula, in
north-west Russia.
The principal asset involved in the South African sale is Eurasia's 90% interest
in Masedi Platinum (Pty) Limited which holds the 390,000 hectare Kliprivier
permit on the eastern edge of the Bushveld.. A smaller interest in a venture
called Doornloop is also being sold, and accounts for 100,000 shares of the
total consideration. The book value of the South African assets is approximately
£690,000.
A third interest, an option over the Doornbosch licence, is not forming part of
the transaction because the licence holder Randgold has opted to retain 100%
under a right of pre-emption. No work has been funded by Eurasia on this
project.
The consideration being paid by Nkwe for Masedi is broken into two stages, with
70% to be paid on completion, which is effective from today. The balance will be
paid when the existing permit is converted in line with new South African mining
legislation. This is expected to take approximately 120 days. Of the Nkwe shares
issued, 200,000 are immediately tradeable, 250,000 are escrowed for 3 months and
the remainder are escrowed for 6 months from the completion date. The Doornloop
consideration will be completed when permits are issued.
For further information contact:
Michael Martineau/Christian Schaffalitzky,
Eurasia Mining PLC: +44 (0) 20 7976 1222
Laurie Beevers, W H Ireland: +44 (0) 161 819 8724
Allan Piper, First City Financial Public Relations: +44 (0) 20 7436 7486
+44 (0) 7736 064 982
This information is provided by RNS
The company news service from the London Stock Exchange
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