Metal Tiger (LON:MTR) told investors it has more time to decide on its option over a gold tailings project in Russia with Eurasia Mining (LON:EUA) - as the expiry date has been pushed out to March 15.
Latest data on the Semenovsky tailings project in Bashkiria show significantly improved financials including a 64% increase in NPV (net present value) to US$23mln and a favourable Rouble/US Dollar exchange rate, Metal Tiger noted.
The deal last year gave Eurasia an exclusive right to up to a two-thirds interest in the project and Metal Tiger paid US$25,000 to secure the option so it could participate in the project on equal terms with Eurasia.
The option period expired on February 12 but with a further payment of $25,000 has now been extended.
These costs will be offset against a maximum commitment of US$100,000 for initial due diligence by the partners should Metal Tiger proceed by March 15.
The deal would potentially be the first joint venture since they agreed to work together on projects in Russia at the end of 2014.
Metal Tiger's chief executive Paul Johnson told investors: "We are pleased to secure the option period extension which provides the additional time to review the new information received on the project and to liaise with third parties as appropriate.
"The project fundamentals are looking increasingly robust and we are extremely pleased to see this strengthening which has occurred in part from the work undertaken during the due diligence phase."
A processing plant at the Semenovsky mine ran for 55 years up to 1998 processing oxide ores from four local deposits.
Construction costs would be US$5mln, which could be paid back within a year, while early internal projections suggest gross revenue of approximately US$57mln over 8 and half years, it was reported last year.
Separately today, Eurasia said it had struck a loan deal with Sanderson Capital Partners, which will see it take £250,000 immediately for working capital.
The loan muist be repaid on or before May 11. There is no interest but there is a £62,500 arrangement fee, which Eurasia will satisfy by issuing around 11.3mln shares at 0.55p each and a documentation and legal fee of £7,500. Christian Schaffalitzky, managing director,. said: "We are pleased to have arranged this interim financing with Sanderson. The company is very busy looking at financing options with mining planned to commence at West Kytlim this summer. We believe this facility gives us time to choose the best option."