28 July 2016
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
Platinum refining and sales agreements with Ekaterinburg non-ferrous metals processing plant
Eurasia Mining plc, the PGM and gold mining company, is pleased to provide an update with regard to the chosen provider of metal refining services for product from the West Kytlim Mine. Agreement has been reached with the Ekaterinburg Non-ferrous Metals Processing Plant ("EZOCM"), part of the Renova Group of companies, for processing of black sand concentrates containing a suite of precious metals from the West Kytlim Mine and a separate contract has been agreed to cover sale of the resulting metal bullion to EZOCM. EZOCM have been operating for 100 years and offer a full range of processing services and end products. Details of the agreements are presented below.
- EZOCM has been selected as the stand out candidate with necessary equipment and personnel to refine metals from black sand concentrates.
- Concentrates at greater than 60% platinum to be delivered in batches of not less than 500g.
- Platinum refining at a cost of 2.75%, payable by Eurasia, Gold refining costs agreed at 5.5%
- Other metals in the PGM suite, i.e. Iridium, Palladium and Rhodium will be recovered but are not expected to materially affect project economics.
- Concentrates are assayed and certified by mutual agreement within 30 days of receipt.
- Refined metals are also to be sold to EZOCM with settlement within 5 days.
The precious metals refinery at Ekaterinburg was commissioned on 23rd October 1916 and is the oldest producer of pure platinum metal in Russia selling products to circa 1,200 customers in Russia and abroad. Their products and service are internationally recognised as being of the highest quality and are included on the London Platinum and Palladium Market (LPPM) Good Delivery List of refiners and assayers. The main products of EZOCM are precious metal bullions, precious metal anode elements, chemical compounds, catalyst gauzes, crucibles for industrial uses, products used in dentistry etc.
Eurasia has agreed, through its subsidiary Kozvinsky Kamen, contracts governing refining of precious metals from black sand concentrates, and separately, sale of the metal content to EZOCM. The concentrate is upgraded on site at the project in West Kytlim to a concentrate of not less than 60% platinum, and shipped in batches of not less than 500g contained platinum. These are received to the refinery, weighed and assayed and then certified by mutual agreement between the parties. Metals are then refined from the concentrate and are subject to a refining charge per precious metal as indicated above. The metal is then sold to the refinery at 93-95% of London Metal Exchange prices and payment settled in Roubles within 5 days. Contracts will be re-negotiated on an annual basis.
Christian Schaffalitzky, MD at Eurasia Mining commented'
" EZOCM was the natural candidate for metal refining, having processed similar material from the West Kytlim area and elsewhere in the Urals Platinum Belt. We are pleased to work with them now and potentially for the Life of the Project and look forward to shipment of our first concentrates in late August. In addition, we are particularly pleased to have agreed a framework for the sales of the refined metals to EZOCM, and look forward to updating shareholders on this in due course."