Vancouver, British Columbia, November 19, 2012 (TSX Venture: EMX; NYSE MKT: EMXX) - Eurasian Minerals Inc. (the “Company” or “EMX”) is pleased to announce the acquisition of the Neavesville gold-silver property (the “Property”) located in the Hauraki goldfield of New Zealand’s North Island. The Company is also pleased to announce the execution of a definitive agreement with Glass Earth Gold Limited (TSX Venture: GEL; NZAX: GEL) (“GEL”) giving GEL an option to acquire the wholly-owned EMX subsidiary that controls the Property. The agreement provides for staged payments and work obligations from GEL, as well as immediate reimbursement of EMX’s exploration costs.
EMX acquired the Neavesville exploration licenses by staking, and with minimal cost. The sale of a property covering a historic gold-silver resource reported under JORC standards in a key mining district serves as another example of the Company’s execution of the prospect generation model. The agreement with Glass Earth Gold is structured with a) in-ground spending requirements to further develop the asset’s value, b) a pre-production revenue stream denominated in terms of gold ounces, and c) a revenue stream based on production, all to the benefit of EMX.
The Neavesville Property consists of two exploration permits totaling over 30 square kilometers that cover two main centers of epithermal gold-silver mineralization (Neavesville and Chelmsford). One of the mineralized centers, named Trig Bluffs, has a historic near-surface inferred resource of 3.2 million tonnes averaging 2.7 g/t gold and 8.9 g/t silver, and containing 289,000 ounces of gold and 944,000 ounces of silver (R. Brathwaite, IGNS report, 1999; 2001). In addition, a separate higher-grade historic inferred mineral resource of approximately 0.47 million tonnes at 7.1 g/t gold and 20.7 g/t silver, and containing 107,000 ounces of gold and 312,000 ounces of silver, was reported for mineralization at depth beneath Trig Bluffs.
Overview of Commercial Terms. The agreement with GEL provides for staged payments and obligations as summarized below:
- Immediate reimbursement of EMX’s exploration costs (C$85,567);
- Payment of 850 troy ounces of gold* prior to the earlier of acquisition of surface access or December 31, 2013;
- A total of 5,000 meters of drilling;
- The filing of a Technical Report with updated NI 43-101/JORC resource estimates before the earlier of (a) 24 months after the gold payment above or (b) December 31, 2015, at which time GEL can exercise the option;
- Additional payments (“Additional Payments”) prior to exercise of the purchase option at the rate of 75 troy ounces of gold* per annum and, after exercise of the purchase option, at the rate of 100 troy ounces of gold* per annum, which payments may be credited against the Deferred Consideration as set forth below;
- Agreement to pay amounts (“Deferred Consideration”) equivalent to 2% of net smelter returns from production from the exploration licenses; in any given year, Additional Payments made prior to production may be credited against up to 80% of the Deferred Consideration payable in that year;
- Beginning with a decision to construct a mine based on a NI 43-101 / JORC feasibility level Technical Report that supports a positive production decision, payment of 0.01 troy ounce of gold for each of the first 500,000 ounces of contained gold in proven and probable (P&P) reserves*. For any contained ounces of gold in P&P reserves that exceed 500,000 ounces over the life of the project, the gold payment to EMX will be reduced to 0.005 troy ounces of gold per contained ounce.