Eurasia Mining plc (LON:EUA) has agreed on a contract for the 2019 season that will allow for Russian company Uralmetmash to carry out mining of platinum group metals and gold at the company’s West Kytlim mine in Russia.
Work is expected to commence on site immediately, with first concentrate production expected in April, as and when running water becomes available.
WATCH: Work set to begin immediately at Eurasia Mining's West Kytlim mine in Russia
The platinum revenues will be split on a 65%/35% basis in favour of the contractor
In addition, Eurasia has also negotiated the payment of an additional 1% on the London Metals Exchange platinum price.
The company will now receive 98% of the LME price from the Urals precious metal refinery.
"We are pleased to be working again with the team that proved so effective during 2018,” said Eurasia chairman Christian Schaffalitzky.
“They were a very efficient operator last year, with a zero accident record, and financially motivated to develop the asset in a sensible manner. Furthermore, we are looking at ways to improve metal recoveries, based on the measured efficiency of the existing process flowsheet. We look forward to updating shareholders on progress and also our longer-term development strategy for the West Kytlim reserves and resources before the season commences."