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

Eurasia Mining plc (LON:EUA) is making progress towards submitting the production license application for its Monchetundra platinum group metals project in Russia. 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. It follows on from the issue of the discovery certificate for the project's 1.9 million ounce palladium equivalent (platinum and palladium) reserves and resources, announced on 17 July 2017. Meanwhile, off-take agreement negotiations are progressing with Glencore (LON:GLEN), Sinosteel (China's state owned EPC contractor and a major mining investor and commodities importer into China) and other major players that cannot be disclosed at this stage, for the entirety of the life of mine output. It is hoped an agreement will be reached with one of these parties in the near future and this agreement will integrate with Eurasia's already agreed, and signed, Engineering, Procurement, Construction and Financing ("EPCF") contract with Sinosteel which includes financing of US$150 million as a 10 year facility at LIBOR plus 3.5 per cent. In support of all that, mining at mining at West Kytlim, Eurasia's operating platinum, gold, iridium and rhodium mine in the Ural Mountains is progressing. An increase in reserves was calculated over the mining area at Malaya Sosnovka owing to higher than expected mining grades and ore body extensions discovered in the 2016 mining season. These reserves increases have been approved and are being developed as part of the 2017 mining season. Separately a mining allotment and quota has been agreed over the Kluchiki Area for the next season of production in 2018. A total of 1,490 metres of resource upgrade drilling was completed earlier in the year, at the Bolshaya Sosnovka and Kluchiki areas. All of these samples have now been processed to allow conversion of C2 category reserves to C1 category reserves. This work, managed by Eurasia but funded by Eurasia's contractor Region Metall, ensures mineable reserves for the 2018 and 2019 mining seasons.