Eurasia Mining plc
('Eurasia' or 'the Company')
Monchetundra Flanks Update
Eurasia Mining is a palladium, platinum, rhodium, iridium and gold producing company, operating the established West Kytlim Mine in the Urals. It is also the operator of the Monchetundra Project: two predominately palladium open pit deposits located 3km away from Severonickel, one of the largest Norilsk Nickel's base metals and PGM processing facility, near the town of Monchegorsk on the Kola Peninsula. The Company is pleased to confirm that the Russian Ministry of Defence has approved the Monchetundra Flanks application, although final approval from SevZapNedra, the regional licensing body, is still awaited. The approval from the Russian Ministry of Defence is an important step in obtaining the Flanks licence, and Eurasia is happy to confirm that the Flanks application process is progressing as planned and we expect to receive the respective licence in due course. Further updates will be provided as appropriate.
Christian Schaffalitzky, Chairman at Eurasia commented: 'The Directors are pleased that all our applications including the Monchetundra Flanks are progressing well and on schedule. We look forward to the formal license issue, which is in line with our strategy to become one of the largest alluvial PGM operations globally. We believe we are now established as an important player in the PGM space in both the Urals and Kola regions. We look forward to scaling up our operations at West Kytlim and providing, what we believe will be the lowest cost PGM operation that is potentially sustainable over several decades. Our cash cushion, our zero debt, the progress on the Monchetundra Flanks and the favourable price environment for PGM, particularly for palladium and rhodium, are helping us in our ongoing talks and discussions, and we believe this strengthens our negotiating position as we continue to explore options for our assets'.
Eurasia Mining Plc
Christian Schaffalitzky/ Keith Byrne
+44 (0)207 932 0418
WH Ireland Limited (Nomad and Joint Broker)
Katy Mitchell / James Sinclair-Ford
+44 (0)161 832 2174
First Equity Limited (Joint Broker)
Tel: +44 (0)20 7374 2212
Optiva Securities (Joint Broker)
Tel: +44 (0) 20 3137 1902
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
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About Eurasia Mining PLC (LSE: EUA)
Eurasia Mining is a long-established palladium, platinum, iridium, rhodium and gold focused production company quoted on AIM, a market of the London Stock Exchange with an operating PGM mine in the Ural Mountains palladium open pit deposit at Monchetundra. In addition, Eurasia maintain an interest in the Semenovsky Gold in Mine Tailings Project, an asset demonstrating potentially low-cost new-term gold production potential.
Eurasia's two core projects are:
The West Kytlim operating mine (of which the Company owns 68%), which is the largest alluvial platinum reserve in the world currently, with 2,283 kilograms of raw platinum in reserves, and resources and resource potential to a further 10 tonnes of raw platinum. A single washplant has operated on site during 2018 and 2019, with further increases in production planned from multiple washplants. The mine was previously contracted to generate cashflow from which to finance further capitalisation of the asset. All contractors were retired from the operation in September 2019 and since then Eurasia has been operating on an owner operated (100% of revenue) basis.
The Monchetundra Project (of which the Company owns 80%), has in place (signed October 2016) an EPCF (Engineering Procurement Construction and Financing) contract with Sinosteel, a state-owned Chinese corporation focused on mining. This agreement fully finances the Project through building of the 1.7m tonnes per annum processing facility at the Monchetundra Project. This financing contract can be drawn down at the option of the Company, and to date the Company has not activated this option.