Business
Kola licences agreed
Kola licences agreed.
About this update from Eurasia Mining Plc
[{"type":"text","content":"\n Eurasia Mining PLC\n13 February 2006\n\nEurasia agrees acquisition of three major Platinum projects in Kola and agrees\njoint venture on Kola projects with Anglo Platinum\n\nEurasia is pleased to announce that it has entered into an agreement to acquire\na 100% interest in three large exploration areas on the Kola Peninsula in\nMurmansk Oblast, Russia. The Kola projects are located in three exploration\nlicences held by two Russian companies and comprise a number of advanced and\nearly stage platinum group metals (PGM) targets. The consideration for these\nlicences is $1.5 million and 10 million new Ordinary Shares in Eurasia, to be\nissued at par value. The vendor is Audley Investments Limited, a BVI based\ncompany with mineral interests in Russia. The three licence areas are\nVolchetundra, held by LLC Yuksporskaya Mining Company, and Monchetundra and West\nImandra, held by Joint Stock Company Terskaya Mining Company. The transaction\nwill be completed following transfer of the funds, about which a further\nannouncement will be made, and the allotment of the shares in the two Russian\ncompanies to Eurasia.\n\nSimultaneously, Eurasia has agreed with Rustenburg Platinum Mines Limited\n(Cyprus) ('RPM'), a wholly owned subsidiary of Anglo Platinum Limited of South\nAfrica, to include these projects in their existing joint venture with Eurasia\nby selling an 80% interest in the Russian companies into the 50:50 joint venture\ncompany, Urals Alluvial Platinum Limited ('UAP'). This transaction is subject to\ncertain conditions, which include normal regulatory approvals in South Africa,\nthe UK and Russia. RPM will acquire their interest by providing $1 million as\npart of the total consideration. On completion, Eurasia will hold a 60% interest\nin the Kola projects.\n\nUnder the agreement, RPM will fund the first $10 million of Kola expenditure\nbefore both parties fund in proportion to their equity interest. On completion\nof a bankable feasibility study or the completion of the $10 million\nexpenditure, which ever is the sooner, RPM have 90 days to purchase the 20% held\nby Eurasia for $6 million or $5 per ounce of platinum group metals in Russian C1\nand C2 categories, whichever is the lesser. Should they exercise this option,\nEurasia would hold 40% of the projects through UAP. RPM can also opt to require\nUAP to purchase this i...