20th Jun 2014 11:45
LONDON (Alliance News) - Eurasia Mining PLC said Friday that it has entered into an agreement to acquire the remaining 50% of its Urals Alluvial Platinum Ltd joint venture that it does not already own, giving it a 100% interest in Ural's platinum group metals projects in Russia.
The transaction is subject to South African exchange control approval.
Eurasia will acquire the remaining share from Rutenburg Platinum Mines (Cyprus) Ltd, a subsidiary of Anglo American Platinum Ltd, itself a subsidiary of Anglo American PLC. The two company's established Urals as a joint venture in 2003,
In 2012, Urals generated a loss of USD74,802 and had total assets of USD13.9 million.
Eurasia said that by doubling its interest in the company it had greater flexibility to bring in new partners, or to restructure for improved efficiency in future operations.
Ural's West Kytlim reserves were recently approved for mutiple-site alluvial mining operations that could operate for at least nine years, and at its Moncheundra prospects, bedrock-hosted platinum metals group and base metal mineralisation has been discovered.
"The timing of this agreement could not be better for Eurasia. We believe our planned platinum production, expected to commence in 2015, is well placed to benefit from the rapidly changing landscape in the PGM business," Managing Director Christian Schaffalitzky said in a statement. "This can only benefit new low-cost mines such as Eurasia's," Schaffalitzky added.
No financial details were disclosed.
Shares in Eurasia were trading down 9.5% at 0.430 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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