Eurasian Minerals Options More Properties

Eurasian Minerals Options More Properties

By: Tomas Ronolski - AllPennyStocks.com News

Wednesday, October 30, 2013

There is more than one way to skin a cat, is how the old saying goes. While grotesque, the meaning is quite clear about several ways to achieving a goal. In the business world, it’s about different ways to generate revenues and juniors, especially in the mining industry, often have to be diversified to grow value. Let’s face it; there are thousands of mining companies aiming to gain the attention of investors, so defining a business model that can generate revenue while exploration is ongoing also can be a tricky key in success. Vancouver’s Eurasian Minerals Inc. (TSX-Venture:EMX) (NYSE MKT:EMXX) has built its business by developing a portfolio of properties from all over the world and then striking agreements to establish a royalty stream. The company is not biased towards a particular mineral, or exploration target for that matter as long as it can generate future cash flow. This strategy is exemplified by an August 7 sale of its geothermal energy assets in Slovakia and Peru to Starlight Geothermal Ltd. for cash, an equity position in Starlight and gross royalties from future geothermal energy production.


In addition to those assets, the company has a litany of exploration projects, several of which are joint ventures, in the United States, Turkey, Europe (focused in Sweden), Haiti, Australia and Asia-Pacific.

Eurasian Minerals has been busy in the past six month with deals, including the aforementioned energy project. In June, the company agreed to option its Akarca property in northwest Turkey to Colakoglu Ticaari Yatirim AS, a Turkish company, in exchange for cash, gold bullion, work commitments and a royalty interest. In the deal, Eurasion gets $250,000 cash upfront and future cash payments that near $10 million, subject to exercise of options, production milestones and other terms, tiered payments in gold from production and a Net Smelter Return.

In September, Eurasian penned an option agreement with Desert Star Resources Ltd. (TSX-Venture:DSR) for the Red Top, Copper Springs and Copper King porphyry copper projects located east of Phoenix, Arizona in the Globe-Miami and Superior mining districts. Desert Star can earn a 100-percent interest in the properties upon submitting shares of the company to Eurasian, incurring exploration expenses and making payments based upon completing milestones. Eurasian retails a 2.5% NSR for the property.

On Wednesday, the company said it has optioned additional U.S. properties. This time, it has agreed to terms with Savant Explorations Ltd. (TSX-Venture:SVT) on earn-in agreements for the Jasper Canyon, Buckhorn Creek and Frazier Creek copper projects. Jasper Canyon and Buckhorn Creek are located in Arizona and Frazier Creek is located in the prolific Battle Mountain-Eureka trend in Nevada.

Each property has its own agreement, but the backdrop is the same as other Eurasian transactions. Eurasian will be granted an equity position in Savant, retain a NSR for the properties and receive payments based upon Savant meeting developmental and production milestones. Joint ventures are also possible in the agreements.

Eurasian has certainly taken a team approach that may pay-off in the future with large payments and significant royalties should the projects be advanced to production stages. For the time being, shares have been holding a downtrend (as most miners have), but found some legs today with the latest news, advancing 7 percent to $1.23 per share as the day winds towards a close.

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