Eurasia Mining (LON:EUA) has farmed out the mining of its West Kytlim alluvial platinum deposit in the Urals to local Russian firm SKRS.
SKRS will be responsible for construction and processing ore from the Malaya Sosnovka sub-area at West Kytlim in return for a 70% share of revenue
Eurasia will receive 30% of total sales revenue generated from production, which will allow it to focus on other licences in Russia, notably the much larger Monchetundra deposit.
Christian Schaffalitzky, Eurasia’s managing director said the transaction would allow it to benefit from the development of West Kytlim without having to fund the capital cost of the project’s development.
“The contract means Eurasia will receive 30% of net revenue, and thus 30% of total sales value, with financing risk minimised while seeing Eurasia achieving a revenue stream in the near term.”