Vancouver, British Columbia, April 3, 2012 (TSX Venture: EMX; NYSE Amex: EMXX) - Eurasian Minerals Inc. (the “Company” or “EMX”) is pleased to announce the execution of an Option Agreement (the “Agreement”) with respect to the Sisorta gold property located in north-central Turkey. The Option Agreement is between EBX Madencilik A.S. (“EBX Turkey”), a Turkish corporation that controls the Sisorta property pursuant to a joint venture between its owners (“Sellers,” described below), and Çolakoglu Ticari Yatirim A.S. (“Çolakoglu”), a privately owned Turkish company. EBX Turkey is a joint venture owned 51% by a subsidiary of ASX listed Chesser Resources Limited (“Chesser”) and 49% by a subsidiary of EMX, and they are the “Sellers” under the Agreement. The obligations of EBX Turkey and the “Sellers” under the Agreement will be guaranteed by Chesser and EMX.
The Sisorta JV project, located in the Eastern Pontides mineral belt, is a volcanic-hosted, near-surface, epithermal gold deposit with a NI 43-101 mineral resource at a 0.4 g/t cutoff of 91,000 indicated gold ounces from 3,170,000 tonnes averaging 0.89 g/t, and 212,000 inferred gold ounces from 11,380,000 tonnes averaging 0.58 g/t (please see Company news release dated June 16, 2009). Near-surface, oxide mineralization represents 76% of the indicated gold ounces, and 73% of the inferred gold ounces, thereby establishing the property’s potential for a small scale, open pit mining operation.
The Agreement requires Çolakoglu to make an up-front payment of 100 troy ounces of gold bullion, or its cash equivalent, and to undertake a US $500,000 work commitment over the first year. After the first year, Çolakoglu can exercise an option to purchase the property for an additional 7,900 troy ounces of gold, or its cash equivalent, with the payments binding on exercise of the option, but staged over a period of four years after option exercise. In addition to the gold payments that will total 8,000 troy ounces, the Sellers will also receive a 2.5% Net Smelter Return (NSR) royalty for any production from the property.
Overview of Commercial Terms. Upon Çolakoglu’s execution of the Agreement and initial payment of 100 troy ounces of gold bullion or its cash equivalent, the Sellers shall grant Çolakoglu an option to purchase all of the Seller’s shares in EBX Turkey. Çolakoglu has the right to exercise its option during a 60-day period after the first anniversary of the Agreement subject to the following terms: 1) spend US $500,000 in exploration work on the property within the option year, 2) deliver notice that it will exercise the option to purchase the shares, and 3) deliver 900 troy ounces of gold bullion, or its cash equivalent, to the Sellers. Once the option is exercised, and in consideration for the shares in EBX Turkey, Çolakoglu will:
- Grant to the Sellers a 2.5% NSR royalty from the Sisorta property;
- Agree to reconvey the shares in EBX Turkey or the Tenement to Sellers or their designees if Çolakoglu decides to abandon the Sisorta property; and
- On the first through third anniversaries of option completion, make guaranteed payments to the Sellers of 1,500 troy ounces of gold bullion, or its cash equivalent, and on the fourth anniversary guarantee the delivery of 2,500 troy ounces of gold bullion, or its cash equivalent.