Business
Update: Kamushan
Update: Kamushan.
About this update from Eurasia Mining Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 8592C Eurasia Mining PLC 14 March 2011 \n \n\nEurasia Mining plc\n \n(\"Eurasia\" or the \"Company\")\n \nUpdate: Kamushan\n \nEurasia is pleased to update shareholders as to its investment in a uranium project in Kyrgyzstan. \n \nNew subsidiary\nAs previously announced on 17 January 2011, Eurasia signed, on behalf of ERA, a Memorandum of Understanding (\"MOU\") to acquire a 55% interest in an advanced uranium project in Kyrgyzstan (the \"Project\"). To effect this agreement, Eurasia has nominated Energy Resources Asia Limited (\"ERA\"), a British Virgin Islands registered company, to be the legal holder of the Project. \nPre the fundraising by ERA, described below, Eurasia and Afrasia Mining & Energy Investment Holdings Limited (\"AME\"), a company with extensive experience working in Asia Minor and which also owns intellectual property on an extensive uranium exploration portfolio in Kyrgyzstan, both own 50% each of the share capital of ERA. Christian Schaffalitzky and Alan Clegg respectively for the two companies have been appointed directors of ERA.\n \nFundraise by ERA\nEurasia and AME intend that a fund raising be undertaken by Optiva Securities Limited on behalf of ERA to raise approximately $2.2 million in order to put ERA in the funds necessary to enable it to execute the MOU, acquire the interest in the Project and progress it. Fund raising is underway and is expected to be completed on or about the 31 March 2011.\n \nPursuant to the MOU (and as set out in the announcement of 17 January 2011) the consideration for the acquisition of the 55% interest in the Project is in two parts. An initial $1 million is to be invested by ERA for a 10% interest in IMC Invest, a Kyrgyz company owning 100% of the Kamushanovskoye uranium project (Kamushan) (the \"Initial Consideration\"). The funds will be used to expedite the Bankable Feasibility Study already started on the Project. A first payment of $150,000 was made by Eurasia and it is intended that the balance of the Initial Consideration will be paid this month from the ERA fundraise. The remaining 45% is to be purchased through an initial payment of $50,000; monthly payments of $10,000 for a maximum of 12 months; and through the grant of a 2% net profit after tax royalty on th...