Eurasian Minerals Inc. is pleased to announce the receipt of a payment of US $601,825, the cash equivalent of 500 troy ounces of gold, from Çiftay İnşaat Taahhüt ve Ticaret A.Ş., as part of the payment schedule for the Akarca gold-silver project in western Turkey.
The Akarca Property was transferred to Çiftay in August, 2016 for a combination of cash, future payment streams denominated in gold bullion, and a royalty interest. See EMX news release dated August 8, 2016 and www.eurasianminerals.com for additional information.
Payment terms. As part of the sale of Akarca to Çiftay, in addition to receiving a US $2,000,000 cash payment at closing, EMX is scheduled to receive payments of 500 ounces of gold every six months commencing on February 1, 2017, and continuing until receipt of a total of 7,000 ounces. Further, Çiftay will pay any remaining amount due within 30 days after the commencement of commercial production from the Property, if the total of 7,000 ounces has not yet been paid at that time.
Receipt of the initial 500 ounce payment leaves a total of 6,500 ounces of gold to be paid to EMX.
Additional terms of the sale include a sliding scale royalty for gold production (subject to certain deductions): 1.0% on the first 100,000 ounces of gold; 2.0% on the next 400,000 ounces of gold; 3.0% on all gold production in excess of 500,000 ounces produced from the Property. For all other mineral production other than gold, the royalty rate is 3.0%. Certain bonuses will also be paid upon achievement of production milestones.
Exploration Update. Çiftay has also informed EMX that it has completed an initial 49 hole diamond drill program comprising 6,032 meters on the Akarca Property in the 4th quarter of 2016. In addition, Çiftay is undertaking various metallurgical and engineering studies on the Property.
Project Overview. Akarca is a low sulfidation, epithermal gold-silver district located in the Western Anatolia mineral belt that was discovered by EMX in 2006. Exploration programs at Akarca, principally funded by partners, have included 300 core and reverse circulation holes totaling ~32,800 meters of drilling, environmental studies, geologic mapping, geochemical sampling, and geophysical surveys.
Akarca is an excellent example of EMX’s execution of the prospect and royalty generation business model. After EMX’s discovery and early exploration, partner funded work delineated multiple zones of near-surface gold and silver mineralization on the Property. This led to the agreement with Çiftay, a leading Turkish construction and mining company that conducts mining operations at the Çöpler gold mine in Turkey.
Dr. Eric P. Jensen, CPG, is a Qualified Person under NI 43-101 and employee of the Company. Dr. Jensen has reviewed, verified and approved disclosure of the technical information contained in this news release.