The Sisorta project, located in the Eastern Pontides mineral belt, is a volcanic-hosted, near-surface, high sulfidation epithermal gold deposit
Eurasian Minerals Inc. announced the sale of EBX Madencilik A.S., the wholly-owned EMX subsidiary that controls the Sisorta gold property in Turkey, to Bahar Madencilik Sinayi ve Ticaret Ltd Sti, a privately owned Turkish company, pursuant to a Share Purchase Agreement with Bahar. Please see www.eurasianminerals.com for more information.
Commercial Terms. The Agreement provides for Bahar’s staged payments to EMX as summarized below:
$250,000 cash payment to EMX upon closing of the sale.
Annual cash payments of $125,000 payable on each anniversary of the closing date until commencement of commercial production from the Property.
3.5% of production returns after certain deductions for ore mined from the Property that is processed on-site.
The Advance Cash Payments will be credited at a rate of 80% against the NSR Payment payable after commercial production commences.
The NSR Payment is uncapped and cannot be bought out or reduced.
Bahar intends to immediately commence advanced exploration and development work on the Sisorta project.
Project Overview. The Sisorta project, located in the Eastern Pontides mineral belt, is a volcanic-hosted, near-surface, high sulfidation epithermal gold deposit. Exploration programs at Sisorta, principally funded by partners, have included 123 diamond drill holes totaling over 16,000 meters, geologic and alteration mapping, geochemical sampling, and geophysical surveys. This work has outlined a 1000 by 600 meter zone of shallow oxide gold mineralization with underlying copper and gold porphyry potential at depth.
The Sisorta Property is another example of EMX’s execution of the prospect and royalty generation business model. Partner funded exploration expenditures advanced the project through drill delineation of a resource in 2009, with EMX regaining 100% control of the project in Q1 of 2015. This set the stage for the Agreement with Bahar, a Turkish mining company that recently put the Altintepe gold mine into production with joint venture partner Stratex International PLC. The Altintepe mine occurs in the same region and has similar styles of mineralization as Sisorta.
Dr. Eric P. Jensen, CPG, is a Qualified Person under NI 43-101 and employee of the Company. Dr. Jensen has reviewed, verified and approved disclosure of the technical information contained in this news release.