Eurasian Minerals Inc. (the "Company" or "EMX") (TSX VENTURE:EMX) (NYSE MKT:EMX) is pleased to announce the execution of an Option Agreement (the "Agreement"), through its wholly owned subsidiary Bronco Creek Exploration, Inc. ("BCE"), for the Copper Springs porphyry copper project (the "Project") with Anglo American Exploration (USA), Inc. ("Anglo American"). The Project is located approximately 120 kilometers east of Phoenix, Arizona within the Globe-Miami Mining District and represents one of three porphyry copper projects acquired in the district through EMX's generative efforts. The Copper Springs Project covers the majority of a newly recognized, southern porphyry copper trend. Please see attached map and www.eurasianminerals.com for more information.
Commercial Terms. (Note: all dollar amounts in USD) Pursuant to the Agreement, Anglo American can earn a 100% interest in the Project by (a) reimbursing BCE's 2016 holding and permitting costs and making annual option payments, together totaling $447,000, and (b) completing $5,000,000 in exploration expenditures before the fifth anniversary of the Agreement. Upon exercise of the option, Anglo American will pay EMX an additional $110,000 and EMX will retain a 2% NSR royalty on the Project. The royalty is not capped or purchasable, except over two parcels of Arizona State Land where Anglo American can buy a 0.5% NSR royalty from EMX for $2,000,000.
After exercise of the option, annual advance minimum payments ("AM Payments") of $100,000 are due, commencing on the first anniversary of the exercise of the option. The AM Payments will increase to $200,000 upon completion of a Scoping Study or Preliminary Economic Assessment ("PEA"). Anglo American may make a one-time payment of $3,500,000 to extinguish the obligation to make any post-Scoping Study AM payments. All AM Payments cease upon commencement of production from the Project.
In addition, Anglo American will make milestone payments consisting of:
- $500,000 upon completion of a Scoping Study or PEA;
- $1,000,000 upon completion of a Prefeasibility Study; and
- $2,000,000 upon completion of a Feasibility Study. The Feasibility Study payment will be credited against future royalty payments.
Anglo American will manage and operate the Project.
Project Overview. The Copper Springs Project is located in the southern part of the Globe-Miami Mining District and is comprised of 262 unpatented federal mining claims and two State of Arizona Exploration Permits totaling ~6,182 acres. Porphyry copper deposits within the district have been structurally dismembered and rotated by younger, post-mineral faulting.
EMX geologists identified the Project's porphyry copper potential from their regional generative work, and acquired the Project through staking and obtaining state exploration leases. New geologic interpretations led to the recognition that the west side of the district is characterized by deep, porphyry root zone-styles of alteration and mineralization (Madera-Copper Springs/Lonesome Pine prospects) while the east side is characterized by shallow, porphyry-related vein and replacement mineralization (Old Dominion Mine & Copper Hills). Between the two zones lie highly prospective, but largely untested down-dropped blocks covered by younger basin fill. These targets represent a previously unrecognized porphyry trend, within the EMX land position.
To date, EMX has completed geologic mapping, structural reinterpretation, and a gravity survey to aid in drill targeting and has begun permitting for an initial drill program. Previous partner funded work included two drill holes which ended in conglomeratic basin fill. The deepest hole included intervals containing native copper, ended at 670 meters, and was subsequently cased to 512 meters for possible future re-entry. EMX and Anglo American are in the process of finalizing exploration plans.
The Copper Springs Agreement is another example of EMX executing the prospect and royalty generation business model to advance its portfolio with quality partners. EMX is enthusiastic to work with Anglo American at Copper Springs and now has three of its six projects in the Globe-Miami and Superior Districts partnered and advancing with major mining companies (see EMX news releases dated May 4, 2015 and October 19, 2016).
Note: The nearby and adjacent mines and deposits in the region provide a geologic context for EMX's Project, but this is not necessarily indicative that the Project hosts mineralization with similar grades or tonnages.
Mr. Michael P. Sheehan, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved disclosure of the technical information contained in this news release.