Vancouver, British Columbia, August 30, 2007 (TSX Venture: EMX) - Eurasian Minerals Inc. (the “Company” or “EMX”) and its wholly owned subsidiary Eurasia Madencilik Ltd. Sti is pleased to announce the sale of the Aktutan base and precious metals exploration property to Dedeman Madencilik San.Vetic.A.S. (hereinafter “Dedeman”). The property sale provides advance royalty payments to EMX, as well as a potential royalty stream from future production at Aktutan.
Discussion of the Aktutan Property
Aktutan is a base and precious metals vein target located in the Eastern Pontides mineral belt. EMX acquired the 4,160 hectare Aktutan exploration licenses via government auction in February 2004. The Company’s surface geologic mapping and geochemical sampling delineated a one kilometer long zone of mineralization, alteration, and silica veining.
EMX tested the vein system by core drilling a fence of four inclined core holes totaling 800.1 meters of sampling. These holes intersected the vein system at an approximate true thickness orientation. All four holes intersected silver-rich, base metal vein mineralization along approximately 750 meters of strike length. Hole AK-4 intersected two veins with high grade mineralization. These two intercepts returned:
- 2.0 meters (from 58.9 to 60.9 m) averaging 3.40% copper, 418 g/t silver, 0.06% molybdenum, 0.11% lead, 0.73% zinc, and 0.90 g/t gold, and
- 1.85 meters (from 78.20 to 80.05 m) averaging 4.20% copper, 472 g/t silver, 0.10% molybdenum, 3.16% lead, 1.45% zinc, and 0.98 g/t gold.
In addition to the primary vein zone, EMX identified parallel vein systems that have yet to be drill tested.
Overview of Commercial Terms
The terms of the sale of EMX’s Aktutan exploration license to Dedeman are summarized below:
- Dedeman will make a US$40,000 advance royalty payment to EMX prior to the first anniversary of the agreement, US$60,000 prior to the second anniversary and US$100,000 prior to the third anniversary and thereafter for as long as they hold the property.
- Dedeman will drill a minimum of 1000 meters during the first year of the agreement; spend US$150,000 on exploration and development in year two depending on results; and US$200,000 in year three, also depending on results.
- EMX is to retain a 4% uncapped net smelter royalty.
- EMX retains a reversionary right to re-acquire the property if Dedeman decides to relinquish the license.
The combination of advance royalty payments, work commitments, and retained net smelter royalties provides significant upside potential to EMX shareholders, while allowing the Company to focus on its precious metals and porphyry copper property portfolio.
EMX’s Growing Base Metal Royalty Portfolio
The sale of Aktutan represents the third royalty property transaction with Dedeman. The initial transaction with Dedeman centered on the Balya lead-zinc-silver property that is currently returning encouraging drill results (see Company news releases dated November 14, 2006 and August 24, 2007). Dedeman is a leading Turkish mining company, with nine active mines that produce lead, zinc, silver, and over four percent of the world’s chrome ore. EMX also retains royalty agreements on a portfolio of precious and base metal properties in Serbia
Scott S. Close Joins the EMX Team as Investor Relations Consultant
Eurasian Minerals Inc. (“EMX”) is pleased to announce the addition of Mr. Scott S. Close as an Investor Relations Consultant to assist in its investor communications activities, subject to regulatory acceptance.
Mr. Close has a diverse background in mining, geology, business development and investing. He will assist with institutional and private investor communications, including representing the Company at investor conferences, providing guidance in developing effective written and web-based marketing materials, and giving timely responses to requests for information and updates on the Company’s activities.
As a private consultant, Mr. Close will be compensated for his services at an estimated annual cost to EMX of US$50,000 per year. In addition to his remuneration, he will incur an estimated annual cost to the Company of US$35,000 in travel and office related expenses. His compensation will be paid by EMX on a monthly basis. Mr. Close has both a direct and indirect interest in the Company as a shareholder. On June 1, 2007, Mr. Close was granted 75,000 incentive stock options at an exercise price of CDN$1.63 per share for a period of five years. The options shall vest as to one sixth on the date of grant, one sixth on the 4th month anniversary of the date of grant, one third 12 months from the date of grant and one third 24 months from the date of grant. His contract is for an unspecified and open-ended period of time. Mr. Close will operate from his private office in Littleton, Colorado and may be reached at 303-973-8585.
EMX is exploring and investing in a first class mineral property and royalty portfolio in some of the most prospective, but under-explored mineral belts of the world. EMX is also participating in quality, early stage exploration investment opportunities to add shareholder value while simultaneously minimizing stock dilution.
Mr. Dean Turner, P.Geo., a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed and verified the technical information contained in this news release.
For further information contact:
David M. Cole
President and Chief Executive Officer
Phone: (303) 979-6666
Kim C. Casswell
Phone: (604) 688-6390
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Eurasian Minerals Inc. Actual results may differ materially from those currently anticipated in such statements.