VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2011) - Eurasian Minerals Inc. (TSX VENTURE:EMX) (the "Company" or "EMX") is pleased to announce the establishment of a Regional Acquisition Agreement (the "EMX-Vale Agreement") between its wholly owned subsidiary, Bronco Creek Exploration Inc. ("BCE"), and Vale Exploration Canada Inc., a subsidiary of Brazilian-based Vale S.A. ("Vale"), focused on identifying and developing copper projects in the western United States. The Agreement includes a regional exploration portfolio generation program, under which Vale has elected to make the Mesa Well copper property the first Designated Project.
The EMX-Vale Agreement capitalizes on BCE's copper exploration expertise in the region and has identified a number of copper targets in key mining districts for follow-up exploration. These targets are based upon recent reinterpretations of the geology of classic mining districts, as well as new frontier exploration areas.
The EMX-Vale Agreement serves as another example of the Company's commitment and successful execution of the prospect generation business model. The Agreement further positions the Company for long-term sustainability, while continuing to provide its investors with exposure to exploration upside and discovery in a rapidly expanding property portfolio developed in some of the world's premier mineral belts. Please see www.eurasianminerals.com for more information.
Regional Acquisition Partnership and Designated Projects. EMX, through its subsidiary BCE, and Vale will conduct a generative, copper-focused acquisition and exploration program within an Area of Interest ("AOI") comprised of the states of Arizona, Nevada, Utah, Idaho, and Montana. EMX will be the operator of the program, and Vale will provide 100% of all regional exploration funding, with a minimum first year expenditure of US$350,000. The Agreement may be renewed by mutual agreement of both parties on an annual basis. All properties will be acquired in the name of BCE, and Vale will have the opportunity to earn an initial 60% interest in any new acquisition, as well as those within EMX's current portfolio, as a Designated Project ("DP") according to the terms summarized below (note all amounts in USD):
For properties not elected to DP status, EMX is free to advance the project on its own terms within the first six months after Vale's decision to decline. However, after six months have elapsed, and prior to EMX vending a project to a third party, Vale has the right to reconsider and elect the property as a DP. If Vale declines this second opportunity, EMX may continue to advance the property with no further obligation to Vale.
Mesa Well Designated Project. The Mesa Well property, selected by Vale as a Designated Project, is comprised of six Arizona State Exploration Permits covering 1,308 hectares in southeastern Arizona. EMX's identification of a porphyry copper target concealed beneath younger cover rocks is based upon a new geological interpretation, the presence of an extensive dike swarm in adjacent outcrops, and coincident geochemical and geophysical anomalies within the property position. Two rotary drill holes were completed in preparation for diamond drill testing of the copper target at depth. One of these holes intersected a key structure at the predicted depth, and returned drill cuttings composed of sericitically-altered porphyry and chips containing traces of copper-oxide mineralization at the bottom of the hole (487m total depth). A follow-up exploration program is currently under review.
About Vale S.A. (Vale). Vale is the world's second largest mining company by market capitalization, is the leader in iron ore and pellet production and is the second biggest nickel producer. Vale also produces manganese, ferroalloys, thermal and coking coal, bauxite, alumina, aluminum, copper, cobalt, platinum group metals and fertilizer nutrients.
Appointment of MI3 Communications. EMX is also pleased to announce the engagement of MI3 Communications Financiéres Inc. ("MI3") for market liquidity (market-making) services. The market-making activity will be carried out through a registered broker under the guidelines established by TSX Venture Exchange Policy 3.4. The goal of MI3's services is to manage volatility, improve liquidity, and preserve the integrity of the market for EMX's stock.
MI3 is a private company based in Montréal, the principal of which is Mario Drolet, and is arm's length to EMX. MI3's personnel have backgrounds as portfolio and pension fund managers, analysts, traders and investment advisors. It has provided public relations, investor relations and market making services since 2007 to over 65 small, mid and large cap Canadian public companies. The term of the appointment is four months, and MI3's remuneration will be CAD $25,000 (plus applicable taxes) payable on commencement of the services. The Company is not aware whether MI3 currently owns any EMX stock.
Dean D. Turner, P.Geo., a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed and verified the technical information contained in this news release.
EMX is exploring and investing in a first class mineral property and royalty portfolio in some of the most prospective, but under-explored mineral belts of the world.
Forward-Looking Statement
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Eurasian Minerals Inc. Actual results may differ materially from those currently anticipated in such statements.
Contact Information: Eurasian Minerals Inc.
David M. Cole
President and Chief Executive Officer
(303) 979-6666
dave@eurasianminerals.com
or
Eurasian Minerals Inc.
Valerie Barlow
Corporate Secretary
(604) 688-6390
(604) 688-1157 (FAX)
valerie@eurasianminerals.com
www.eurasianminerals.com