Eurasia Mining said an Engineering Procurement, Construction and Commissioning (EPC) turnkey contract has been signed in relation to its Monchetundra project in the Kola peninsula in northwest Russia bordering Finland.
The EPC is between Eurasia's 80% subsidiary, Closed Joint Stock Company "Terskaya Gornaya Kompaniya" (TGK), which holds the Monchetundra licence, and Sinosteel, a Chinese state owned group operating primarily in mining, trading, equipment manufacturing and engineering.
The contract is for the development of two platinum group metal ('PGM') deposits located in the Company's Monchetundra licence area, which also contain gold, copper, cobalt and nickel.
Feasibility studies are currently underway on two deposits, Loipishnune and West Nittis, to be completed by year-end. Together with the EPC contract, this will be the culmination of the Company's work since the licence was acquired in 2006.
The contract provides for engineering, procurement and construction of a 1.7 million tonnes per annum PGM beneficiation project at Monchetundra.
Sinosteel's engineering and construction arm is Sinosteel Equipment & Engineering Co. Ltd. Sinosteel is a major mining company and the second largest importer of iron ore in China. It is one of the largest global EPC contractors with a track record of successfully commissioning similar projects in Australia, Africa, China and Latin America. The proposed contract would provide for Sinosteel to undertake mine and processing plant turnkey construction and commissioning on a commercial arms-length basis.
The debt-based finance for the EPC turnkey contract is to be arranged by Sinosteel and is an integral part of the EPC turnkey contract. This EPC contract is being advanced as part of discussions with third parties for the sale or joint venture of the project.
At 3:01pm: (LON:EUA) Eurasia Mining PLC share price was +0.28p at 0.8p