Sinosteel is a major engineering outfit and one of the largest importers of iron ore into China.
Eurasia Mining plc shares doubled as the Russia-focused junior unveiled a massive deal with Chinese major Sinosteel to develop its Monchetundra platinum project on the Finnish border.
The contract is for the development of two platinum deposits and a 1.7mln tonnes per year beneficiation plant.
Sinosteel is a major engineering outfit and one of the largest importers of iron ore into China.
It will construct and commission the mine on a commercial arms-length basis, with the contract in total worth US$176mln.
Sinosteel will arrange US$150mln worth of finance for the development, with funding an integral part of the EPC turnkey contract said Eurasia.
Some USS$50mln of the contract will be assigned to Eurasia’s 80% subsidiary TGK for open pit preparatory work.
Sinosteel’s contract is based on a two-year due diligence and evaluation of the Monchetundra project.
The plant contract is exclusive to Sinosteel for a period of ten years.
Christian Schaffalitzky, Eurasia’s managing director said: “We have always considered Monchetundra to be an attractive project and the recent expressions of interest, including the concept of an outright proposal to acquire the project, and the desire to secure an EPC contract in relation to Monchetundra, clearly demonstrates that our judgment was well founded.
“This contract with one of the world largest EPC contractors provides the framework for the construction of a processing plant designed to treat ore from two open pits in the Monchetundra licence area.”
Shares jumped 100% to 1.05p.
Elsewhere, at West Kytlim, deliveries to the refinery are continuing and payment amounts for the first batch of concentrate have been agreed, while at the Semenovsky gold project, our metallurgical testing program is nearing completion, said Schaffalitzky.
source: proactiveinvestors.co.uk
