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Eurasia Mining hails “step change” in development as it takes full control of production at West Kytlim

The miner said it was fully financed to begin the 2020 season without having to employ contractors, meaning it will now receive 100% of revenues compared to its previous share of 30-35%

Eurasia Mining PLC - Eurasia Mining hails “step change” in development as it takes full control of production at West Kytlim
West Kytlim is a platinum and gold mine in Russia

Eurasia Mining PLC (LON:EUA) has hailed a “step change” in its development as it took full control of production at its West Kytlim mine in Russia.

In an operations update, the AIM-listed precious metals miner said it was fully financed to begin the 2020 season without having to employ contractors at the site, meaning it will now receive 100% of revenues generated compared to its previous share of between 30-35%.

READ: Eurasia Mining says talks continue with VTB Capital and CITIC Group

“Contracting in the early years was necessary to build our own team on the ground, however it resulted in relying on potentially unsustainable production due to the contractor's own priorities. We are happy to be in full control now”, said Eurasia chairman Christian Schaffalitzky.

Meanwhile, Eurasia said that due to “delays and inconsistencies” of its original contractor only 2,122 ounces of Platinum had been approved for mining in 2019 by authorities, although the company said it was currently working to ensure the Bolshaya Sosnovka area of the project, which contains around 24,000 oz, will be available for mining in 2020.

Additional reserves at the Kluchiki area of the site have already been fully permitted for mining.

The company added that it is also in discussions with equipment leasing firms to acquire the necessary machinery for the 2020 mining season, which is expected to begin in January.

Eurasia also said that it had appointed Anthony James Nieuwenhuys, the current chief executive of South African Lesego Platinum Mining Limited, as a non-executive director with immediate effect, although it would not be acquiring Lesego as was previously indicated as a condition of Nieuwenhuys’s appointment.

In lunchtime trading on Tuesday, Eurasia’s shares were 11.1% lower at 3.1p.

Quick facts: Eurasia Mining PLC

Price: 2.65 GBX

AIM:EUA
Market: AIM
Market Cap: £700.38 k
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