Eurasia Mining plc (LON:EUA) has agreed a refining contract for its West Kytlim alluvial platinum project in the Urals, Russia.
Ekaterinburg Non-ferrous Metals Processing Plant (EZOCM), part of the Renova Group, will both process black sand concentrates from West Kytlim and buy the bullion produced.
Eurasia will be required to deliver concentrates at greater than 60% platinum to be delivered in batches of not less than 500g.
Platinum refining will cost of 2.75%, payable by Eurasia, while gold refining costs will be 5.5%. Other metals such as iridium, palladium and rhodium will be recovered but are not expected to materially affect project economics.
Metals produced will be sold to the refinery at 93-95% of London Metal Exchange prices and payment settled in Roubles within 5 days.
Eurasia added that the refinery at Ekaterinburg was commissioned in 1916 and is the oldest producer of pure platinum metal in Russia selling products to around 1,200 customers in Russia and abroad.
Christian Schaffalitzky, Eurasia’s managing director, said: "EZOCM was the natural candidate for metal refining, having processed similar material from the West Kytlim area and elsewhere in the Urals Platinum Belt.
“We are pleased to work with them now and potentially for the Life of the Project and look forward to shipment of our first concentrates in late August. In addition, we are particularly pleased to have agreed a framework for the sales of the refined metals to EZOCM, and look forward to updating shareholders on this in due course."