Business
Extension of Option Agreement
Extension of Option Agreement.
About this update from Eurasia Mining Plc
[{"type":"text","content":"\n \nRNS Number : 8921O Eurasia Mining PLC 12 February 2016 \n\nEurasia Mining plc (AIM: EUA)\n \n(\"Eurasia\" or the \"Company\")\n \nExtension of Option Agreement\n \n \nHighlights:\n \n- Eurasia is pleased to announce an update with regard to the option held by Metal Tiger plc (LON:MTR) over the Semenovsky Tailings Project (\"STP\"). Metal Tiger has requested, and Eurasia has agreed, an extension until 15 March 2016 by contributing a further US$25,000 to work on the STP. \n \n- During the initial period of the option, ongoing work has improved both the understanding and the economics of the STP. In summary, the latest project data demonstrates significantly improved project financials including a 64% increase in Net Present Value to $24m, reflecting improved project economics and a favourable Rouble/US Dollar exchange rate.\n \n \nDetails of the Agreement\n \nAs announced on 16 November 2015, Eurasia signed a Heads of Terms (\"HOT\") with OOO Metallurg Complect, a Russian minerals company, whereby Eurasia has the exclusive right to negotiate to acquire up to 67% in a gold tailings opportunity, the Semenovsky Tailings Project (\"STP\"). Those negotiations are still ongoing, and there is no guarantee that a transaction will proceed.\n \nIt was also announced on 16 November 2015, that Metal Tiger had paid $25,000 to secure an option with Eurasia that affords Metal Tiger the opportunity to elect to participate in the STP on equal terms with Eurasia. The option period, which was for 3 months, expired on 12 February 2016. Eurasia and Metal Tiger have today agreed to extend that option by a further month and Metal Tiger will pay Eurasia a further $25,000 for that interest.\n \nIf Metal Tiger exercises its option, it will fund up to $100,000 of exclusivity work programme costs i.e. an additional $50,000 plus the $50,000 option payments already made. The forecast exploration costs of the exclusivity period are $72,000, with the additional $28,000 being a contingency for unforeseen expenses.\n \nThereafter, if companies confirm they wish to pursue the STP opportunity by the end of the exclusivity period, the project risks and rewards will be shared equally between Eurasia and Metal Tiger. It is anticipated that this will be in the form of a specially formed J...