Business
Execution of Memorandum of Un
Execution of Memorandum of Un.
About this update from Eurasia Mining Plc
[{"type":"text","content":"\n RNS Number : 5584Z Eurasia Mining PLC 17 January 2011 \n \n\nEurasia Mining plc\n(\"Eurasia\" or the \"Company\")\n \nExecution of Memorandum of Understanding\n \nEurasia is pleased to announce that, as an early outcome of its expanded search for near to production mining projects in the former Soviet Republics, it has executed a legally binding Memorandum of Understanding (\"MOU\") to acquire an interest in the Kamushanovsky uranium project in Kyrgyzstan.\n \nThe project is located in the flood plain of the Chui River, 60 kilometres northwest of the capital Bishkek, in northern Kyrgyzstan. It has been the focus of a five-year exploration programme. It is currently estimated that there are at least 1,775 tonnes of uranium oxide within the licence area.\n \nTerms of the Agreement\nEurasia has executed the MOU with International Mining Company Invest Inc (\"IMC Inc\"), the owner of Closed Joint Stock Company IMC Invest (\"IMC\"). Under the terms of the MOU, Eurasia will receive a 10% interest in IMC, which holds the interest in the Kamushanovsky project. In consideration of the shares, Eurasia will pay $1,000,000 to IMC Inc (of which $150,000 has been paid and a further $850,000 is to be paid on or before 1 March 2011). These funds are to be used for continued work on the project.\n \nIt is also agreed that 45% of IMC Inc's holding in IMC will transfer to Eurasia if certain additional conditions are satisfied. These conditions predominately require Eurasia to identify an investor to satisfy the full capital and operational expenditure for IMC, within 12 months of the date of the MOU and to grant IMC Inc a 2% net profit after tax royalty on an eventual mine at Kamushanovsky. \n \nIMC Invest\nIMC is a company incorporated in the Kyrgyz Republic. It is an early stage exploration company, which holds a 100% interest in the Kamushanovsky advanced uranium project in Kyrgyzstan. It is currently not generating any revenue or profit. \n \nA bankable feasibility study (\"BFS\") is currently being prepared and this study is planned to incorporate pilot work directed at optimizing uranium extraction. It is the intention that the BFS will be completed in preparation for development by the end of 2011. \n \nCommenting on the transaction, Christian Schaffalitzky said: \"We believe Kamu...