Precious metals company Eurasia Mining has appointed former Goldman Sachs and Morgan Stanley senior investment banker Alexei Churakov as strategic adviser.
Churakov has extensive mining merger and acquisition experience and has top level contacts with mining companies, including South Africa’s Lesego Platinum, which is undertaking a due diligence on Eurasia’s West Kytlim and Monchetundra platinum group metals mines, in Russia.
Eurasia said on Monday that Churakov had helped to arrange detailed due diligence and multi-day site visits by Lesego CEO James Nieuwenhuys as part of an evaluation of Monchetundra and West Kytlim.
Lesego is considering the potential partial acquisition of Eurasia’s subsidiaries and joint venture opportunities at the sites, the London-listed company said, adding that should any transaction occur, Nieuwenhuys could join its board of directors.
Nieuwenhuys is a former COO of Russian gold miner Polyus Gold and has also held MD positions at engineering, procurement and construction organisations Bateman Projects and SNC-Lavalin.
Eurasia said that Churakov had assisted in negotiations with Sinosteel helping structure the engineering, procurement, construction and finance contract to include a $50-milion subcontract through which Sinosteel provides Terskaya Mining Company, Eurasia's subsidiary developing the Monchetundra project, with the start-up financing. The first payments comprising $26.5-million would allow Eurasia to finance its obligations under the contract with Sinosteel without shareholder dilution and make the Monchetundra project self-financed.
Churakov has also assisted in developing the West Kytlim phased production increase strategy involving Eurasia's own team and its contractors.
Eurasia further announced that long-term director Dmitry Suschov had transferred 25.472% of the share capital of a company he controlled, Deloan Investments, to Churakov’s Venus Garden Holdings for a nominal consideration. Deloan holds a substantial shareholding in Eurasia.
“We are grateful to our long-term director Mr. Dmitry Suschov for providing a motivation package to Mr. Churakov while at the same time keeping the existing shareholders intact,” said chairperson Christian Schaffalitzky.