Eurasia Mining PLC Approval of Monchetundra Mine Permit by MOED (3207T)

TIDMEUA

RNS Number : 3207T

Eurasia Mining PLC

03 July 2018

Eurasia Mining plc (AIM: EUA)

("Eurasia" or the "Company")

Approval of Monchetundra Mine Permit by MOED

Eurasia Mining plc (AIM: EUA) ("Eurasia Mining" or the "Company") the PGM (Platinum Group Metals) and Gold producing company, operating the West Kytlim Mine, the second largest alluvial PGM mine globally, is pleased to announce approval of the Monchetundra mine permit application by the Ministry of Economic Development (MOED).

The mine permit application, for the Monchetundra project (80% owned 2 million-ounce PGM reserve plus resource) is now awaiting sign off at the Ministry of Natural Resources, before progressing to the office of Prime Minister Dmitry Medvedev for final approval. The application process remains on track to be completed by late summer. A discovery certificate, confirming title for the contained reserves and resources at the Monchetundra project was issued in July of 2017.

Highlights

- Ministry of Economic Development approval of the Monchetundra mine permit application

- Application now with the Ministry of Natural Resources, the governing body of Rosnedra.

- Monchetundra project contains state approved reserves and resources of about 2 million ounces PGM with a Palladium:Platinum ratio of 2:1 and an in-situ value of approximately US$2bn (a calculation based on London Metal Exchange January 2018 spot metal prices. See announcements dated 31 May 2017 and 02 February 2018).

Christian Schaffalitzky commented: 'Another key milestone, and again sooner than expected. The process is now entering its final stages, in fact the final stage of approval before the anticipated signing at the office of the Prime Minister. Thus far the application has progressed faster than at the West Kytlim Project. Our thanks once again to our people and the officials in the Russian agencies for appreciating the merits in the project.'

Further details on the Monchetundra Project

Monchetundra is Eurasia's 80% owned 2 million-ounce PGM (Reserve + Resource) project near the town of Monchegorsk on Kola Peninsula. A feasibility study and reserves estimate for the contained reserves and resources achieved state approvals in May 2017 (see announcement dated 31 May 2017). Subsequently, a discovery certificate, which guarantees mining rights to the holder, was issued in July 2017 for the reserves and resources contained within two open pittable locations, Loipishnune and West Nittis. A mining license application proceeded directly on receipt of the discovery certificate and later achieved provisional approval from Rosnedra, the Russian ministry for subsoil use. The application was later reviewed by the Federal Anti-Monopoly Service before being approved by both the Federal Securities Service (FSB) and Ministry of Defence (MOD). The Federal Anti-Monopoly Service, also reviewed the application before forwarding to the FSB and MOD. The permit application has now been approved at the Ministry for Economic Development and progresses to the Ministry of Natural Resources, the ministry which governs Rosnedra the federal agency for subsoil use. On approval at the Ministry for Natural Resources the application is signed by the office of Prime Minister as finally granted.

Currently, state approved reserves and resources within the Monchetundra Project comprise Russian standard C1 and C2 categories of 55.9 tonnes (about 2 million ounces) palladium equivalent (predominantly palladium) at two open-pittable locations, West Nittis and Loipishnune. These open pits also contain significant gold and base metal credits including 28,124 tonnes of copper, 30,410 tonnes of nickel and 2 tonnes of gold. The PGM resources are palladium rich with an average palladium to platinum ratio of 2:1. Directors believe the project to be unique globally in being lead by high palladium grades, and that it represents a significant lower cost open pit mining operation which compares favourably to the relatively expensive underground operations in South Africa, the dominant player in the global PGM market.

Engineering Procurement Construction and Financing (EPCF) Contract

As previously announced, an EPCF (Engineering, Procurement, Construction & Finance) agreement is already in place with Sinosteel, a Chinese state owned major infrastructure project group. 85 per cent (or US$149,600,000) of the contract value has been arranged as debt-based by Sinosteel - this element of plant construction costs will remain on the Sinosteel balance sheet until such time as the plant is operating at full capacity and to designed specification. A further US$50,000,000 sub-contract has been assigned by Sinosteel to Eurasia's subsidiary Terskaya Gornaya Kompany(TGK) for the development of the two open pits in preparation for mining and may be drawn down in advance of the main mine construction.

Discussions continue with other third-party service providers regarding the running of the mine at Monchetundra. The Company hopes to emulate the contract mining arrangement utilised at West Kytlim by contracting the mining operation to a reputable international specialist company with experience in Russia, while maintaining control of the project, for a percentage of gross revenue.

Consent for release

Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the Company. He has reviewed the update and consents to the inclusion of the exploration information in the form and context in which it appears here. He is a Competent Person for the purposes of the reporting of these results.

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Enquiries:

 
Eurasia Mining PLC                      Tel: [phone] 
 Christian Schaffalitzky / Keith Byrne 
WH Ireland Limited (Nominated Adviser   Tel: [phone] 
 & Broker) 
 Katy Mitchell / James Sinclair-Ford 
First Equity Limited (Joint Broker)     Tel: [phone] 
Jason Robertson 
 

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July 03, 2018 02:00 ET (06:00 GMT)