Eurasia signs contract mining agreement with SKRS for West Kytlim deposit in Russia
Eurasia Mining has signed an agreement under which SK Region-Story will perform contract mining at the former’s West Kytlim alluvial platinum deposit in the Urals, Russia.
Construction company SKRS will provide all capital equipment and services in return for a 70% share of revenue.
“Under the terms of the agreement, SKRS will acquire, construct, assemble, deliver and install mining and processing equipment.”
Eurasia Mining managing director Christian Schaffalitzky said: “We are delighted to announce this transaction, which will enable Eurasia to benefit from the development of West Kytlim without having to fund the capital cost of project development from its own resources.
“In addition to the financing benefits, the involvement of the contracting company, OOO SK Region-Stroy, means that management resources can be applied to the development of the Company’s other interests, including Monchetundra, where we believe there is an opportunity to crystallise material value for shareholders and where we are in advanced discussions to achieve this outcome.”
Eurasia’s local subsidiary ZAO Kosvinsky Kamen will own the remaining 30% of the total revenue, while Eurasia will retain all rights and interest in the West Kytlim licence.
Under the terms of the agreement, SKRS will acquire, construct, assemble, deliver and install mining and processing equipment.
The company will also carry out the schedule of activities including site clearance, preparatory works, stripping, mining, washing of gravels, minerals concentration.
It is also responsible for maintenance of temporary living quarters, laboratory, repair shop, canteen, sanitary amenities and other facilities that are needed for mine development.
KK / Eurasia will continue exploration work and is responsible for geological and technological supervision.
The company needs to appoint the manager of the concentrate processing laboratory on site responsible for the technology of the recovery of precious metals from concentrates.
“This is an all-diesel operation but we plan to use electrically powered equipment for later areas, a much cheaper mining method,” Schaffalitzky added.
- Terra Balcanica extends its polymetallic footprint with positive drill exploration in its flagship project in Bosnia
- St Charles Resources said it reached a final agreement to acquire Bulgaria-based private mining business Eastern Resources
- Europe, Can mining ever be green?
- Russia, Eligdar reports record gold production in 2022
- The exploitation of Portugal’s mineral resources
- Lydian, Amulsar Gold and a viable mining industry in Armenia
- GeoProMining Gold indirectly confirms its involvement in corrupt deal with Armenian government
- Jadar Lithium in Serbia gets four exploration licenses
- Conroy Gold and Anglo Asian Mining to open modern gold mine in Ireland by 2030
- Who are the main players in the ore exploration business in Serbia
- Talas Gold Mining Complex in Kyrgyzstan launched
- Greenland, Amaroq Minerals says Kobberminebugt’s high-grade nature is ‘unsurprising’
- Romania bail out from Ukraine Krivoy Rog Mining Oxidized Ore project investment
- Lydian files BIT notice in relation to Armenian mining project that has been blocked
- Polish ZGH Boleslav accused of polluting Montenegro rivers from its lead zinc mine Suplja Stijena