Proactiveinvestors RSS feed en Mon, 18 Jun 2018 17:59:52 +0100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[Media files - Eurasia Mining receives approval of Monchetundra mine permit application ]]> Thu, 14 Jun 2018 12:39:00 +0100 <![CDATA[News - Eurasia Mining jumps on news of Monchetundra mining permit approval by two Russian agencies ]]> Eurasia Mining plc (LON:EUA) shares jumped on Wednesday as it announced approval of the Monchetundra mine permit application by two key Russian federal agencies: the Federal Securities Board (FSB) and Ministry of Defence (MOD).

The AIM-listed PGM (Platinum Group Metals) and gold mining company said the mine permit application for the 2mln ounce PGM Monchetundra project has now progressed to ministerial level.

READ: Eurasia Mining posts Information video showing current production activities at its West Kytlim platinum mine

The company said the mine permit application will now be reviewed by the Ministry of Economic Development (MOED) and Ministry of Natural Resources, before progressing to the office of Russia's prime minister Dmitry Medvedev for final approval.

Eurasia Mining said the application process remains on track for a successful grant by late summer.

Christian Schaffalitzky, Eurasia's executive chairman and managing director commented: “A very welcome development for our Monchetundra mining license permit, which remains on schedule.”

He added: “The Monchetundra Project is very much a focus of the company's business, alongside the now full-scale production of PGM at our West Kytlim mine.”

In mid-morning trading, Eurasia Mining shares were up 8% to 0.405p

 -- Updates share price --

Wed, 13 Jun 2018 08:22:00 +0100
<![CDATA[RNS press release - Approval of Monchetundra Mining Permit ]]> Wed, 13 Jun 2018 07:00:04 +0100 <![CDATA[News - Eurasia Mining posts Information video showing current production activities at its West Kytlim platinum mine ]]> Eurasia Mining plc (LON:EUA), the PGMs (platinum group metals) and gold mining company said it has now prepared an Information video (blog) for shareholders covering current production activities at its West Kytlim platinum mine in Russia.

The AIM-listed group said on Wednesday that West Kytlim – which has the second largest alluvial platinum reserve in the world – is now fully operational.

WATCH: Eurasia Mining says West Kytlim is now fully operational

The company pointed out that that the project’s washplant achieved design capacity, of 130 cubic metres per hour over a minimum 18 hour operational day.

It said that total raw platinum production amounted to 11.8 kilograms by May 16 which suggested an average grade of 771mg per cubic metres.

Eurasia Mining said the video – which can be viewed on the company's website - was filmed over the course of a day on 16th May 2018 and details the entire mining process.

It added that the process is followed from extraction at open pit, washing of gravels, collection of platinum bearing sands and gravels from a sluice, and upgrade at the on-site laboratory to raw platinum product. 


Thu, 24 May 2018 15:12:00 +0100
<![CDATA[RNS press release - Communications Update ]]> Thu, 24 May 2018 14:15:02 +0100 <![CDATA[News - Eurasia Mining says West Kytlim is now fully operational ]]> Eurasia Mining plc (LON:EUA) has highlighted that the West Kytlim platinum mine is now fully operational.

The company, in a stock market statement, said that the project’s washplant achieved design capacity, of 130 cubic metres per hour over a minimum 18 hour operational day.

It said that total raw platinum production amounted to 11.8 kilograms by May 16 which suggested an average grade of 771mg per cubic metres.

READ: Eurasia Mining raises funds; updates on progress at West Kytlim

So far, processing of the first ore stockpile is now nearing completion and mining is underway to create further stockpiles.

Next month, the company’s contactor will assess the future development of the mine site including the Kluchiki area.

"We are delighted at the continued progress made at our West Kytlim mine and indeed it is very satisfying to achieve full operational capacity,” said Christian Schaffalitzky, executive chairman.

“Techstroy continue to meet our high expectations this year and we have excellent working relations now established.

"We look forward to the 2018 mining season with renewed excitement and shareholders can expect regular updates on progress at West Kytlim and other developments across the company."

Wed, 23 May 2018 11:47:00 +0100
<![CDATA[RNS press release - Platinum Production Update ]]> Wed, 23 May 2018 11:31:52 +0100 <![CDATA[News - Eurasia Mining raises funds; updates on progress at West Kytlim ]]> Eurasia Mining plc (LON:EUA) has raised £500,000 through a significantly oversubscribed placing of shares and warrants at 0.3p a pop.

The warrants, attached to the shares on a one-for-one basis, are exercisable at 0.6p a share up to and including May 16, 2020. Eurasia Mining shares closed at 0.42p last night.

READ Eurasia Mining looks at new loan as production picks up​

The funds will partly be used to substantially reduce the convertible loan facility arranged by Riverfort Global Capital to around £440,000. Having received repayment of around £300,000 of the loan, Riverfort has agreed to not convert any of the remaining loan balance into Eurasia shares until September 10 of this year at the earliest.

The remainder of the funds raised will be used for working capital.

“It is timely and strategic to reduce and contain our Riverfort Loan funding facility as the Company enters the next phase of value growth,” said Christian Schaffalitzky, the executive chairman of Eurasia.

In a separate announcement, Eurasia updated the market on operations at its West Kytlim mine, the second largest alluvial platinum mine in the world.

The mine is now approaching its capacity of around 2,000 cubic metres (m3) per day. An initial 'first fill' test was completed successfully on May 3, with the first sample returning 428 grams (g) of raw platinum, for an average grade approaching 1g per m3.

Several successive days of continuous production followed, with the largest amount produced in a single day being 1.3 kilograms of raw platinum on 9th May 2018.

Shipments to the refinery in Ekaterinburg are expected to commence on May 11.

Mining at 2,000m3 per day is expected to continue for the foreseeable future until either the end of the mining season in early November 2018 or when the platinum and gold-bearing reserves at Malaya Sosnovka have expired. When the latter occurs mining the idea is to move on to the much larger Kluchiki area.

"We are extremely pleased by the significantly increased levels of raw platinum production already occurring at West Kytlim with our new contractors and equipment in place to maximise the 2018 mining season. We eagerly anticipate the Monchetundra mine permit now that it is in the final stage of the approval process,” said Schaffalitzky.

"The board is focused on delivering value to shareholders and we look forward to providing further updates to market over the coming weeks and months," he added.  

Thu, 10 May 2018 08:20:00 +0100
<![CDATA[RNS press release - Strategic Financing & Broker Appointment ]]> Thu, 10 May 2018 07:05:01 +0100 <![CDATA[RNS press release - Mining Update From West Kytlim ]]> Thu, 10 May 2018 07:00:05 +0100 <![CDATA[RNS press release - Company Presentation ]]> Mon, 26 Mar 2018 16:53:35 +0100 <![CDATA[News - Eurasia Mining starts work at its West Kytlim Project in the Ural Mountains ]]> Eurasia Mining plc (LON:EUA) has announced the start of site works for the 2018 field season at its West Kytlim Project in the Ural Mountains.

The AIM-listed firm said terms have now been finalised with OOO Techstroy of Nizhny Tagil, an alluvial mining contractor, and machinery and equipment have been mobilised to the site with stripping works to start immediately.

READ: Eurasia Mining amends US$2mln loan agreement so more cash can be directed to mining preparation

Christian Schaffalitzky, Eurasia's executive chairman, said: “We can take full advantage of the full mining season at Malaya Sosnovka starting now and aim to break ground at the Kluchiki area later in this summer.”

Last month, the platinum group metals and gold producer said its application for a mining permit for the Monchetundra project in Russia was progressing much quicker than expected.

The Russian authority of mining, Rosnedra approved a draft of the permit and forwarded the relevant documents to the ministry for defense (MOD) and Federal Security Service (FSB) for the go-ahead.

Fri, 09 Mar 2018 07:36:00 +0000
<![CDATA[RNS press release - New Contractor Appointed at West Kytlim ]]> Fri, 09 Mar 2018 07:00:03 +0000 <![CDATA[RNS press release - Statement re Broker ]]> Fri, 02 Mar 2018 13:32:58 +0000 <![CDATA[RNS press release - Conversion Notice - Issue of Equity ]]> Wed, 28 Feb 2018 15:59:53 +0000 <![CDATA[News - Eurasia Mining says permit application for Monchetundra mine is going faster than expected ]]> Eurasia Mining plc (LON:EUA) says its application for a mining permit for the Monchetundra project in Russia is progressing much quicker than expected.

The authority on mining, Rosnedra has now approved a draft of the permit and has forwarded the relevant documents to the ministry for defence (MOD) and Federal Security Service (FSB) for their go-ahead.

READ: Eurasia Mining has two million PGM ounces in the ground, and a finance deal to get them out

"We are very pleased with this result and the efficiency of the officials at Rosnedra in processing this application," said Christian Schaffalitzky,  the executive chairman at Eurasia.

"The experience of our staff in Russia, gained from successfully processing a similar mining permit for our West Kytlim Project has proven invaluable.

"We look forward to providing further positive news in due course."

Monchetundra, on the Kola Peninsula, is a major platinum group metals (PGM) and base metals project with state approved reserves plus resources of 2mln ounces of palladium equivalent of PGM with further base metal and gold credits.

READ: Eurasia Mining lodges mine permit for Monchetundra

Under Russian standard C1 and C2 categories, the project hosts 55.9 tonnes (about 2mln ounces) palladium equivalent (predominantly palladium) at two open-pittable locations, West Nittis and Loipishnune. 

These pits also contain significant gold and base metal credits including 28,124 tonnes of copper and 30,410 tonnes of nickel.

An EPCF (engineering, procurement construction and financing contract) to develop the mine has already been inked with Sinosteel -  a state owned Chinese group.

Meanwhile, discussions continue with other third-party service providers over operating the mine.

Eurasia wants to emulate the contract mining arrangement at West Kytlim by contracting it to a reputable international specialist company with experience in Russia.

Shares shot up 50% in early deals to 0.38p to be top London gainer.

Fri, 02 Feb 2018 07:26:00 +0000
<![CDATA[RNS press release - Monchetundra Mine Permit Update ]]> Fri, 02 Feb 2018 07:00:02 +0000 <![CDATA[News - Eurasia Mining has two million PGM ounces in the ground, and a finance deal to get them out ]]> Eurasia Mining plc (LON:EUA) has now established a resource of over two million ounces of platinum group metals at the Monchetundra project on the Kola Peninsula in European Russia.

In the world of platinum juniors that’s a significant sum, and in Eurasia’s case it’s particularly useful since much of the metal is in fact palladium, the price of which has recently been bumping along at multi-year highs.

READ: Eurasia Mining amends US$2mln loan agreement so more cash can be directed to mining preparation

Why then is Eurasia only capitalised at a modest £3.9mln?

The answers to that are threefold. One, it’s a quiet period, following the end of exploration at Monchetundra in last year. Two, the company’s other project, the West Kytlim alluvial mine in the Urals, has had a few teething issues. And three, it’s Russia, and the discount for that is hard to shake.

Still, Eurasia’s chief executive Christian Schaffalitzky is clear that in his own experience the discount is undeserved.

“Kinross Gold (TSE:K) has been producing in Russia since 1994, uninterrupted,” he points out.

“Silver Bear (TSE:SBR) is there, and so is Amur Minerals (LON:AMC). But the best example is probably Petropavlovsk (LON:POG).”

Regular readers will know that Petropavlovsk, acquired, financed and built a mine in Russia all without significant hindrance more than 15 years ago, and it’s been producing and expanding ever since.

Russia, in Schaffalitzky’s mind, is not problematic. Indeed, although the timing remains uncertain, Monchetundra is now well into the licensing process there, and will have to pass under the gaze of several ministries and statutory bodies before full permitting is granted.

But so be it. Other companies have done it. And other companies weren’t backed by SinoSteel, as Eurasia is at Monchetundra.

“Sinosteel is a one-stop development shop for the mine,” says Schaffalitzky.

Indeed, Sinosteel is standing behind 85% of the capital required for the construction of Monchetundra, or US$150mln.

That leaves Eurasia with just US$25mln of its own to find, either through debt, equity or another source. But, as Schaffalitzky notes, within the US$150mln Sinosteel component is a US$50mln sub-contracting fee to Eurasia for the development, to cover engineering and geotechnical works at the outset, and it’s quite conceivable, even likely, that Eurasia will see a surplus on expenditure from this phase of work.

READ: Eurasia Mining lodges mine permit for Monchetundra

So here we have a two million ounces platinum group metals project moving through permitting, with construction finance lined up and the possibility that further equity dilution may be kept to an absolute minimum.

It’s an enticing prospect that will certainly be the making of Eurasia once the project gets up and running.

In the meantime though, the company is beginning to get to grips with issues that have set back early production plans from alluvial mining in the Urals. It turned out that the contractor Eurasia was using at the West Kytlim project was seriously undercapitalised and had to be replaced.

But that process is now underway after the contractor was pulled off site in October and a new investor was brought in to help with funding. As announced this week, Mr Churakov has brought a cash injection of US$350,000 directly to the project level, with these funds to contribute to the 2018 mining budget.

Mr Churakov now owns 7% of the West Kytlim project, and the transaction therefore values the asset at circa US$5mln, or at roughly US$1mln for every ton of approved eserve or resource in ground.

The plan is to install a second wash plant and perhaps to install a powerline, which will make a big difference to the operating costs. West Kytlim can then become the project it was always meant to be – a smaller operation that provides useful cashflow to the company as it works up its bigger opportunities.

It’s pretty clear from the above valuation of West Kytlim that the market has yet to price in any value whatsoever for the Monchetundra project and for its part Eurasia has yet to publish an independent NPV.

Monchetundra is quite different to West Kytlim in terms of deposit style, but with some caveats the price per tonne in ground paid by Mr Churakov could be extended to the 56 tonnes of reserve and resource at Monchetundra.

The company has previously stated an in-situ value of US$2bn for the project. These two valuations US$56mln and US$2bn offer some broad, guidance on the lower and upper estimates of a fair valuation.

In addition, the company also has  the Semenovsky gold project, which has more than 3,000 kilograms of gold contained in old tailings.

Semenovsky is a minnow compared to Monchetundra, but given that its internal rate of return rings in at well over 60%, it’s highly attractive.

And these projects aren’t all that Schaffalitzky has on his mind.

“Opportunities like Semenovsky and West Kytlim are able to throw off cash quickly,” he says.

“But we are still keen to try to create a platform to do other mineral ventures. There are very few people operating in Russia and the opportunities are immense.”


Thu, 25 Jan 2018 11:05:00 +0000
<![CDATA[RNS press release - Completion of Transaction ]]> Wed, 24 Jan 2018 07:00:03 +0000 <![CDATA[RNS press release - Replacement - Amendment to Loan Agreement ]]> Thu, 14 Dec 2017 15:16:48 +0000 <![CDATA[News - Eurasia Mining amends US$2mln loan agreement so more cash can be directed to mining preparation ]]> Eurasia Mining PLC (LON:EUA) has had the scheduled repayments of its loan agreement, arranged by Riverfort Global Capital Ltd in May, significantly reduced and the final payment date extended so the firm can direct more cash into mining preparation.

In a statement, the AIM-listed firm said the scheduled loan repayments for the next four months are reduced to US$25,000 per month in cash plus interest, and the final loan repayment date of 15 May 2018 is extended to 15 September 2018 to cover the main production season at West Kytlim.

READ: Eurasia Mining lodges mine permit for Monchetundra

The group also said that for the next four months, there will be no conversion of principal on the loan if Eurasia’s share price remains below 0.34p  - a 51% premium to yesterday's close of 0.225p.

The loan renegotiated was for US$1.25mln, with two other loans making up the total of US$2mln agreed in May - one of which for S$500,000 now having been repaid. 

Eurasia said that 80,749,333 warrants have also been cancelled and replaced by 109,196,618 new warrants at a price of 0.34p, a 20% premium to the VWAP in the 30 days preceding the loan amendment.

It added that a 10% restructuring fee is to be recouped at the end of the loan’s term, in addition to the principal amount.

The group said all of this is designed to direct more cash into work on the mining site, and at the same time to avoid share dilution.

Grace period appreciated

Eurasia’s CEO, Christian Schaffalitzky commented: “We appreciate the grace period here offered by our funding partner and the confidence they have shown in the Company generally and specifically in the West Kytlim Mine and its ability to generate revenue in the 2018 mining season.”

He added: “Our team is currently busy working on the best options to ensure a successful mining season in 2018, as the Monchetundra project progresses through permitting.

“Furthermore, the Company continues to pursue new options that could enhance these projects, provide greater commodity diversity and to increase production volumes.'

 -- Updating to clarify renegotiated loan amount --

Thu, 14 Dec 2017 12:53:00 +0000
<![CDATA[RNS press release - Amendment to Loan Agreement ]]> Thu, 14 Dec 2017 12:18:03 +0000 <![CDATA[RNS press release - Issue of Equity and Directors' Holdings ]]> Mon, 11 Dec 2017 15:47:06 +0000 <![CDATA[News - Eurasia Mining lodges mine permit for Monchetundra ]]> Eurasia Mining plc (LON:EUA)  told investors that it has lodged a mine permit application for the Monchetundra project.

The company added that it has continued to mine at West Kytlim, though it will imminently close for the 2017 season.

Additionally, new exploration licences have been made for an area adjacent to West Kytlim.

"We are very pleased to have submitted the Monchetundra mining license application, our second application in just over three years,” said Christian Schaffalitzky, executive chairman.

“We are hopeful for a reasonable processing time and have the in-house knowledge and experience to make the process as smooth as is possible.”

“We look forward to updating on the application's progress in due course.”

 Schaffalitzky added: “we continue to make progress at our West Kytlim Mine which is expected to temporarily close for the winter season, as usual, before the end of the month.

“Production volumes are considerably less than anticipated due to continued optimisations and modifications required to the machinery on-site.  We are actively working on new commercial arrangements to upscale the operation for the 2018 mining season."

Tue, 05 Dec 2017 14:31:00 +0000
<![CDATA[RNS press release - Monchetundra Application & West Kytlim Update ]]> Tue, 05 Dec 2017 13:46:08 +0000 <![CDATA[News - Eurasia Mining reveals direct equity investment from Venus Garden Holdings ]]> Eurasia Mining plc (LON:EUA) said Venus Garden Holdings Limited (VGH) is planning a direct equity investment in the West Kytlim gold and platinum mine in Russia.

VGH - owned by Alexei Churakov, who has held positions at Goldman Sachs and Morgan Stanley – has subscribed £76,336 for 27,262,814 new ordinary shares of 0.1p each in the share capital of the AIM-listed precious metal explorer at a price of 0.28p.

VGH has indicated its intention to buy a 7% minority stake in Eurasia's subsidiary ZAO Kosvinsky Kamen, which owns the West Kytlim project. But Eurasia said a there can be no guarantee of a deal.

Russia-focused Eurasia added that Beaufort Securities Limited has raised a further £104,800 before expenses at a price of 0.28p over 37,428,550 new ordinary shares in the group’s issue of equity.

The funds will be used for working capital purposes.

An application will be made for the 64,691,364 first new shares and second new shares to be admitted to trading on AIM. Dealings in these shares are expected to start “on or around” 22 November, Eurasia said.

The total number of issued ordinary shares in the company will then be 1,627,511,122 ordinary shares and the total number of voting rights in the group will be 1,627,511,122. 

Eurasia chairman Christian Schaffalitzky said: "We are pleased to shortly welcome Alexei as a shareholder and investor in the company. The directors believe his planned direct investment in the West Kytlim project will be commensurate with his assistance in developing this asset and we believe it is beneficial for the company, bearing in mind both his financing background with Goldman Sachs and Morgan Stanley and his mining industry background.” 

Mon, 20 Nov 2017 15:35:00 +0000
<![CDATA[RNS press release - Issue of Equity ]]> Mon, 20 Nov 2017 15:09:59 +0000 <![CDATA[News - Interims show Eurasia on track with Russian assets ]]> At the end of June 2017 Eurasia Mining plc (LON:EUA) had just over £450,000 in cash.

The company’s interim results showed nominal revenue for the period of £26,000 and a loss before tax of just over £1.1 mln.

READ: Eurasia Mining on track for mining license at Monchetundra PGM project in Russia

There have been two subsequent small equity financings.

Eurasia took the opportunity to remind investors that Montechundra is nearing the end of feasibility, while progress at West Kytlim continues.

If Eurasia can make these mines work, it will be a rare London-listed junior with platinum production outside of Southern Africa.

Only Bezant (LON:BZT) has similar aspirations, and on a smaller scale. Eurasia’s Montechundra deposit boasts 1.9 mln ounces of palladium and platinum.

Tue, 26 Sep 2017 08:00:00 +0100
<![CDATA[RNS press release - Interim Results for Six Months Ended 30 June 2017 ]]> Tue, 26 Sep 2017 07:00:03 +0100 <![CDATA[RNS press release - Issue of Equity ]]> Mon, 11 Sep 2017 15:13:09 +0100 <![CDATA[News - Eurasia Mining shares surge as it strikes collaboration with blockchain group GoldMint ]]>  

Shares in Eurasia Mining plc (LON:EUA) raced 10% higher on Friday afternoon as it struck an alliance with GoldMint PTE - a firm which is an emerging player in blockchain technology - the platform originally devised for Bitcoin.

The memorandum of understanding means where Eurasia identifies potential exploration and mining projects it can collaborate with GoldMint on financing all or part of them.

The agreement can also apply to Eurasia's current projects and interests.

GoldMint has evolved from the Russian high street gold management and lending business Lot-Zoloto.

It is developing a platform so physical gold can be traded more quickly and it aims to make transactions backed by physical gold more fluid.

The platform was originally devised for the digital currency Bitcoin but has now found further applications.

It is creating opportunities for innovation in finance itself - the way companies can put money in place for projects.

Eurasia has an operating mine in the Ural Mountains, and separately its approved reserves and resources within the Monchetundra project on the Kola Peninsula comprise 1.9mln ounces of palladium equivalent.

In addition, Eurasia has an interest in the Semenovsky gold and mine tailings project, a project which has near term gold production potential.

Earlier this week, Eurasia said it was making progress towards submitting the production license application for its Monchetundra platinum group metals project.

So far, all necessary contracts covering mine design, blasting, mine surveying, ecological monitoring and land rehabilitation have been assigned to third parties, a necessary step towards a successful mining license application.

It means the application itself will be lodged on schedule, in September.

Shares added over 10% to 45p.

Fri, 08 Sep 2017 13:07:00 +0100
<![CDATA[RNS press release - Memorandum of Understanding Signed with GoldMint ]]> Fri, 08 Sep 2017 12:12:32 +0100 <![CDATA[News - Eurasia Mining on track for mining license at Monchetundra PGM project in Russia ]]> Mon, 04 Sep 2017 07:55:00 +0100 <![CDATA[RNS press release - Project Update ]]> Mon, 04 Sep 2017 07:00:04 +0100 <![CDATA[RNS press release - Issue of Equity ]]> Fri, 18 Aug 2017 14:40:46 +0100 <![CDATA[Media files - Eurasia cracking on with mining application now discovery certificate's in hand ]]> Tue, 18 Jul 2017 14:07:00 +0100 <![CDATA[News - Eurasia Mining granted discovery certificate at Monchetundra ]]> Eurasia Mining plc (LON:EUA) has been granted a discovery certificate for the 1.9 mln ounces of palladium equivalent at its Monchetundra project in Russia.

The granting of the certificate follows swiftly on from the application, announced on 15 June 2017.

Eurasia, through its local subsidiary Terskaya Mining Company, has now been officially credited as the discoverer of the Monchetundra reserves and resources and holds an exclusive right to apply for and receive a mining licence for their extraction.

WATCH: Eurasia cracking on with mining application now discovery certificate's in hand

Eurasia now expects to submit an application for a Mining Licence at Monchetundra in the near future.

The company intends to progress the development of Monchetundra using a similar model to that which has proven successful at its West Kytlim mine, where production has commenced.

“The rate of progress at Monchetundra, from submission of our Feasibility Study, through Reserves Approval to issue of a Discovery Certificate, has been impressive by any international standard,” said managing director Christian Schaffalitzky.

“We look forward to progressing our Mining Licence application as we move towards development of this major asset."

Mon, 17 Jul 2017 07:44:00 +0100
<![CDATA[RNS press release - Receipt of Discovery Certificate ]]> Mon, 17 Jul 2017 07:00:03 +0100 <![CDATA[RNS press release - Result of AGM ]]> Thu, 29 Jun 2017 16:55:06 +0100 <![CDATA[Media files - Eurasia Mining ticks off key steps at Monchetundra ]]> Fri, 16 Jun 2017 09:31:00 +0100 <![CDATA[News - Eurasia Mining well-positioned in what will potentially be a major new PGM producing area ]]> “Kola is a company maker,” says Christian Schaffalitzky, managing director of Eurasia Mining plc (LON:EUA). “Certainly Kola is a company maker.”

He’s speaking in the wake of a decision by the Russian State Subsoil Agency Rosnedra to give its official seal of approval to the 1.9 mln ounces of palladium and platinum booked by Eurasia at its Montechundra project.

Situated at the western end of the Kola Peninsula, Montechundra is the only platinum and palladium project left standing in the region after the clear-out engendered by the long mining bear market. There are rumours that Barrick might reactivate a moth-balled project to the north, but that’s another story.

WATCH: Eurasia Mining ticks off key steps at Monchetundra

“I do think Kola will become a producing region in the future,” says Schaffalitzky, “simply because of the costs of mining PGMs in South Africa.”

South Africa is the world’s foremost producer of PGMs by some way, but operations there have been bedevilled by low prices, deep mines, union battles and a general air of political uncertainty.

A major new platinum district remains one of the holy grails of the mining industry, and if Kola isn’t quite set to challenge South Africa yet, Schaffalitzky remain optimistic about the future.

“The exploration potential remains excellent at Kola,” he says.

If the Russian bureaucratic environment can manage to be more benign than the South African one then, it may stand a chance.

A favourable sign was certainly in evidence at the end of May when Rosnedra gave the official government nod to Montechundra. Eurasia is embarking on the next phase, as Schaffalitzky explains.

“We are now filing a discovery certificate,” he says. “That’s the first step to getting title in Russia.”

In the interim there’ll be something of a hiatus on the ground at Montechundra, but behind the scenes the company will be working on a detailed development plan, that may yet include adding to the existing resource.

“The two open pits that comprise the project are pretty well defined, open at depth and along strike,” says Schaffalitzky.

“We’re optimistic they’re going to end up being even bigger than they are at the moment. But in the meantime, there won’t be much spend over the next 12 months. Instead we’ll be preparing the project for financing.”

To that end, Eurasia has already lined up Sinosteel as the major contractor. Sinosteel has agreed in principle to provide 85% of the US$176 mln development capital in the form of a LIBOR+3.5% loan which they will hold on their own balance sheet until they hand over the plant.

That leaves Eurasia with 15% to find, but on that score the company has a trick up its sleeve.

“We have to find the balance of US$25 mln,” says Schaffalitzky. “But there is, within the Sinosteel proposal a direct subcontract back to us to do the pre-strip, prepare road networks, do geotechnical work, conduct logistics and so forth. We do all that for a US$50 mln subcontract, so although we have to borrow US$25 mln we’re getting US$50 mln back.”

But will there be enough margin on that work to cover Eurasia’s end?

“We reckon we should be more than able to pay for the works we’re expected to carry out, plus the balance should be nearly enough to pay for the US$25 mln.

As for the remainder, Schaffalitzky says Eurasia did speak to a streaming company last year, but that actually at that point it was too early to enter into anything tangible.

The time for that will come again, but meanwhile Eurasia has also been making progress at the West Kytlim alluvial platinum mine in the Ural Mountains. The timetable here had been thrown off due to adverse weather, but nevertheless, says Schaffalitzky, 2017 is the year that the company expects to have full production from one washplant.

In time, two more washplants will come on stream, such that a back of the envelope calculation shows that by 2019 the project ought to be able to produce 300 kilos of PGMs per year.

That’s a nice little cash generator, made all the more useful by Eurasia’s arrangement with its contractor that its take comes as a percentage of revenues rather than profits.

But it’s still relatively small. For the company maker, it’s back to the Kola Peninsula and the methodical work that will be involved in pioneering a whole new platinum and palladium mining area.


Thu, 15 Jun 2017 13:11:00 +0100
<![CDATA[RNS press release - Discovery Certificate Application Submitted ]]> Thu, 15 Jun 2017 12:02:10 +0100 <![CDATA[News - Eurasia Mining gets August extension as it mulls options for Russian tailings plant ]]> Eurasia Mining plc (LON:EUA) has been given until end-August to make up its mind on the Semenovsky tailings project in Russia.

The AIM-listed company has a option to take a 67% stake and is mulling the best way process the ore at the dump to extract gold and silver.

 Reserves amount to 2.99mln tonnes, which would mean .5 tonnes of gold and 49.3 tonnes of silver based on the average grades.

A 'low-tech' circuit liberating 40% of gold in cyanide leach tanks and recovering gold with a manufactured resin was the basis of a previous study for an 8.5-year mine life.

This would see an average of 4,938 ounces of gold and 682,000 ounces of silver produced per annum and generating total revenues of US$57mln at a gold price of $1,135 per ounce.

Free cashflow after allowing for processing costs, land rehabilitation and relevant taxation would total US$33mln or US$3.8mln per annum, with a net present value of US$15mln. 

Bulk transport another option

Eurasia said today, however, that it is looking at another option of bulk transport and gold recovery at an industrial scale.

This operation, which is now being costed, comprises crushing, grinding and leaching circuits, with subsequent recovery of gold from leach solutions via a Merill Crowe Machine.

At Semenovsky, this would involve bypassing the initial crushing and grinding circuits and delivering ore direct to the leaching circuit.

Christian Schaffalitzky, Eurasia’s chief executive, said: "I am delighted that Eurasia's exclusive right to acquire up to 67% of the Semenovsky Tailings Project has now been extended to end of August 2017 as this ensures sufficient space for the Company to continue its development program.”

Shares rose 10% to 0,55p.


-- updates for share price --



Thu, 15 Jun 2017 10:01:00 +0100
<![CDATA[RNS press release - Semenovsky Tailings Project ]]> Thu, 15 Jun 2017 07:00:02 +0100 <![CDATA[News - Eurasia Mining hails reserve approval for Monchetundra as 'incredibly important' development ]]> Eurasia Mining plc (LON:EUA) has had the reserves report and feasibility study for its Monchetundra palladium and platinum project approved by the Russian State Agency for Subsoil Use (Rosnedra).

Using Russian standard C1 and C2 categories, the reserves amount to 55.9 tonnes (1.9mln ounces) palladium equivalent (palladium and platinum) with major additional gold and base metal credits, at two open pits.

They are the first to be approved on the Monchetundra Licence said Christian Schaffalitzky, managing director, who added it was  “an incredibly important development” and had come through much quicker than we had anticipated.

"The application for the award of a Discovery Certificate has already commenced, and following that, Eurasia will be entitled for a Production License.

"Our proposed route to development is similar to the model applied to our already producing mine at West Kytlim.

“As the Monchetundra open pit mine is significantly larger, a management company with experience in beneficiating platinum group metals ("PGM") ores will be employed.  These discussions have been underway for almost one year and are now advanced.

Much of the 30km of drilling on the licence so far was financed through a joint venture with Anglo American Platinum, which sold its equity to Eurasia in 2014.

“Since that time, Eurasia have managed to continue to advance the project through to the Feasibility Study and Reserves approval, Engineering Procurement and Construction ("EPC") contract and financing - a considerable undertaking for an exploration company with a very limited budget.”

Shares rose 8% to 0.49p.

--updates for share price--

Wed, 31 May 2017 09:21:00 +0100
<![CDATA[RNS press release - Russian Subsoil Agency Approves Maiden Reserves ]]> Wed, 31 May 2017 07:00:04 +0100 <![CDATA[RNS press release - Loan Facility and Issue of Equity ]]> Fri, 19 May 2017 13:54:46 +0100 <![CDATA[News - Eurasia Mining looks at new loan as production picks up ]]> Eurasia Mining plc (LON:EUA) is looking to refinance with a director’s loan as it steps up production at the West Kytlim alluvial platinum mine in Russia.

A loan arrangement with third parties and Dmitry Suschov, a director of the company, for £1.6mln will repay the existing Sanderson loan arrangement, though the details have yet to be confrmed.

Eurasia posted first revenues of £140,00 in 2016 as it produced its first platinum at West Kytlim. Currency movements helped it post profits of £994,000 (£1.69mln loss).

This year at West Kytlim, Eurasia expects a full season of production and if development of a second area at Kluchiki goes to schedule a second plant may also come on stream before the end of the field season. 

At Monchetundra, a major compilation effort combined with new hydrogeological and metallurgical work, culminated in a feasibility study being lodged in December 2016 as an application for the approval of reserves under the Russian classification system

This study had been approved and the company is waiting for the formal registration of these reserves.

Eurasia said the next step is the application for a Discovery Certificate and then a production licence for a 25-year term. A development plan for two deposits will then follow.

At the Semenovsky tailings project, several project finance options are being considered with the aim to minimise shareholder dilution.

The company added that Michael Martineau is also standing down as chairman with Christian Schaffalitzky to take over as Executive Chairman and acting CEO.

Tue, 16 May 2017 15:35:00 +0100
<![CDATA[RNS press release - Unaudited Preliminary Results ]]> Tue, 16 May 2017 15:03:27 +0100 <![CDATA[RNS press release - Retirement of Chairman ]]> Tue, 16 May 2017 14:37:51 +0100