Eurasia Mining plc (LON:EUA) has signed an engineering procurement and construction contract with Chinese company Sinosteel for the development of the two million ounce Monchetundra palladium, platinum and gold project in Russia. The EPC contract comes with an associated mine finance package.
The bulk of this mine finance comes in the form of a US$149.5mln ten year loan facility at six month LIBOR plus 3.5%.
Eurasia and its 80% subsidiary TGK are now working to secure the conditions for triggering this finance package.
The detailed project design report, including open pit design, detailed land survey of the two open pit sites, and other key work is now complete.
And an agreement has been signed with Intec International Projects Pty Ltd to look at process improvements to further enhance the profitability of the project.
"Our team and our contractors at CKE continue to progress our plans for the development of this palladium dominated open pit mine,” said Christian Schaffalitzky, chairman of Eurasia.
CKE is the company’s partner in its operating West Kytlim mine, also in Russia.
“It is our intention to significantly increase activity on site over the next six to 12 months to accomplish activities stipulated by the EPC,” continued Schaffalitzky.