By Samuel Indyk
Investing.com – Eurasia Mining, the UK-listed metals exploration company, announced on Friday it has signed an agreement with Russian state-owned company Rosgeo to create a new joint venture.
Agreement details
The legally binding agreement will allow Eurasia Mining (LON:EUA) to gain a 75% equity stake in nine new mining assets with the additional 25% held by Rosgeo.
Eurasia paid a total of $500,000 in cash for its share in the joint venture which will expand its portfolio of mining assets in the Kola Peninsula. Additional incremental consideration will become payable under an earn-out structure should Eurasia decide to develop the additional assets.
The new assets have a total of 104.6mln ounces of platinum equivalent resources as of December 31st, 2020. They are comprised of four palladium, platinum, copper, nickel, and cobalt open pit deposits, upon which Russian feasibility study completed and reserves approved by Russian authorities.
An additional five mostly open pit palladium, platinum, copper, nickel, and cobalt assets are also included where Eurasia has carried out due diligence. In total the company has invested $8.3mln across the additional assets.
“The Directors are delighted to sign this agreement with Rosgeo, which by expanding Eurasia's open pit assets both in palladium, platinum and in battery metals by a total of 104.6mln ounces Platinum equivalent resources, unlocks a number of additional opportunities for the Company and its shareholders,” said Eurasia Executive Chairman Christian Schaffalitzky.
“We look forward to working with Rosgeo, a global company with renowned proficient technical capabilities and the best partner we could have in Russia, as we are making progress on the strategic options available to the Company.”
At 09:11GMT, Eurasia Mining shares were up 14.5% at 32.09p.