05 Jul Further Re Option Agreement
AURASIAN MINERALS EXERCISES OPTION ON GOKCANICA GOLD PROJECT, SERBIA
AURASIAN Minerals plc (“Aurasian” or the “Company”) is pleased to announce that, further to the announcement dated 25 May 2016, it has completed due diligence on the Gokcanica Gold project and decided to exercise the option agreement with Rockstone Group LLC (“RSG”), pursuant to which Aurasian can earn up to an 80% interest in the Gokcanica project licenses in Southern Serbia (“the Gokcanica Permits”).
Aurasian will pay RSG EUR10,000 and within 30 days issue RSG 2 million ordinary shares in the capital of the Company (“Ordinary Shares”). Aurasian will also pay EUR20,000 and issue 5 million Ordinary Shares to an unrelated third party by way of an introducers’ fee. A further announcement will be made when these shares are due to be admitted to trading on AIM.
Upon payment of the sums above, Aurasian may earn up to an 80% interest in the Gokcanica project by completing the following:
(a) Stage 1:
In order to earn a 51% interest in the Gokcanica Permits, Aurasian must commit a minimum expenditure of USD 500,000 on an exploration program that will include a drilling of a minimum of 1,000m of either reverse circulation and/or diamond drilling within 2 years. This could include, but is not restricted to, mapping, trenching, rock-chip sampling, soil sampling, remote sensing, geophysics as well as other relevant items such as logistics and administration.
(b) Stage 2:
In order to earn a 70% interest in the Gokcanica Permits, in addition to the drilling commitment outlined above, Aurasian must complete a Pre-Feasibility Study (“PFS”) within 5 years.
(c) Stage 3:
In order to earn an 80% interest in the Gokcanica Permits, in addition to the drilling commitment and PFS, Aurasian must complete a Bankable Feasibility Study (“BFS”) within the time-frame of the exploration permits, their renewals or conversion to a mining permit.
Peter Mullens CEO of Aurasian Minerals commented, “We are excited to exercise the option agreement over the Gokcanica Permits. Work can now commence on defining areas of interest and the commencement of geological mapping and sampling to define drill targets. Gokcanica has potential for both epithermal and porphyry style mineralisation and of particular interest are high grade arsenic rich veins which previous sampling has defined up to 67 g/t Au. In addition Aurasian plans to look at the possibility of large scale buried porphyry copper gold targets which may be drill tested.”
For further information about the Gokanica Permits please refer to the announcement dated 25 May 2016.
For further information please contact:
Aurasian Minerals Plc
Peter Mullens (CEO) firstname.lastname@example.org
finnCap Limited – Nominated adviser
Christopher Raggett / Scott Mathieson +44 (0)20 7220 0500
Peter Mullens, who has reviewed this update, has more than 30 years’ experience in the mining industry and is a fellow of the Australian Institute of Mining and Metallurgy. He holds a BSc in Geology from Monash University, Melbourne, Australia.
About Aurasian Minerals
Aurasian Minerals PLC is an AIM listed junior exploration company exploring for copper and gold. Aurasian has an experienced board and technical team headed up by Chris Goss, previously leader in project finance for emerging markets for the International Finance Corporation and Peter Mullens who has more than 30 years’ experience in the mining industry and is a fellow of the Australian Institute of Mining and Metallurgy. The company is well funded in a difficult market. Currently they hold the Chadine polymetallic project located in Serbia which has an historical non-compliant resource, calculated by the Yugoslav Geological Survey, of 7.7 million tons of 1.1 % Cu, 2.6 % Zn, 1.0 % Pb plus Au and Ag credits.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014