The recent news about the Rosgeo JV , the appointment of Tamerlan Abdikeev , the mention of Japanese interest , and the EGM announcement  is exciting but confusing. So, this is my thought process in a somewhat chronological order along with some speculation and why I think it is important that we log in and vote yes in the EGM to support our BOD and help them increase shareholder value.
Brief overview of MT:
•Current reserves in mining permit  = 2.2Moz Pd equivalent 
•‘Target’ resources within the flanks licence  = 13.3Moz Pd equivalent 
•Exclusivity zone (not ours …yet) = 7Moz 
•Wider Monchegorsky district (not ours… yet) = 17.7Moz 
•So, total potential resources as of now 15.5Moz 
•Mine plan to produce 1Moz pa 
•EPC contract signed with Sinosteel to develop mine if needed 
At 01/07/2020 the additional advertise incentive over and above the current 15.5Moz was “Explorationupside: Expanding mineable reserve base via acquisition of adjacent licences.” . As of the 09/04/2021circular it now states “Expansion: mineable reserve base via the Rosgeo JV.” . Looks like this Rosgeo JVgives them all the additional licences they wanted.
Screenshots for the lazy:
The four pits close to the MT licence:
•Are open pit and suitable for toll treatment 
•Incorporated into current (1Moz pa) or new (more than 1Moz pa) mine plan 
•Can use current infrastructure at MT 
•Faster to develop (get cash quicker) 
•Lower cost to develop 
•Lower cost to run 
•Safer to operate 
•Gives buyer the option to transition to underground mining [9, 10]
•Lower cut off grade so more resources economical due to lower costs [12, 13]
The addition of these 4 open pits surrounding MT could constitute the 40Moz Pd that was mentioned in previous RNS  and in the investor presentation . The RNS states that in addition to our 15Moz:
- additional potential resources occurring within 5km of the Monchetundra Mining license andareas neighbouring the Company’s deposits of c.4Moz;
- And additional potential resources within the wider Monchegorsk district in which theMonchetundra license is located of c.21M oz.
- The potential for the area could be 40M oz of PGMs, but as stated above this data has not beenindependently verified by Eurasia and other than the area covered by the Company’s existinglicence the Company does not yet have any other licences in the area”.
In the image below, the green part is our current MT licence. The blue parts are Rosgeo licences. If those licences are part of the Rosgeo JV then they could contain the 4 open pits and could constitute the “wider Monchegorsk district” mentioned in the RNS.
The additional five pits (not close to the current MT licence):
- Are a mix of open and underground pits 
- DD been completed here 
- 20km of exploration and 12 thousand samples taken acros these 5 pits 
- Likely need to develop a mine plan for these as not stated if this has been done
- This could take us to > 2Moz pa. See GMF calculations for impact of this 
SPECULATION – This sounds suspiciously like Volchetuntra .
The RNS on 04/12/2019  said:
“The Company would also like to highlight further regional potential specifically in the Volchetundra Project, previously operated by the Company under a Joint Venture with Anglo American from 2004 to 2011, and subsequently surrendered to focus on the Monchetundra Project. Volchetundra occurs 5 km from Monchegorsk. This high palladium deposit now becomes of interest given the recent price appreciation in palladium and the future price outlook. Palladium prices through 2011 averaged less than $600 per ounce. The Company’s database of proprietary information including 12,000m of drilling will be compiled in due course to reassess the projects future potential development. If the Company did want to explore this project again, it would have to re-apply for the relevant licences and there can be no guarantee that they will be granted.”
Now the description of the 5 pits from the 26/04/2021 RNS  is the following:
“A further five mostly open pit palladium, platinum, copper, nickel and cobalt assets are included in the JV, where Eurasia has carried out due diligence including c.20km of exploration drilling and some 12 thousand samples taken by Eurasia”
Volchetundra seems to fit the bill from the descriptions. It is also curious that two applications were submitted by Northern Palladium recently. One was for Volchetundra (red box in map below), the other for a zone north of Volchetuntdra (the yellow box in map below). Their application was rejected for Volchetundra but was accepted for the area north. Looks like Volchetundra was being kept for someone else. Maybe for us.
To put the value of the Rosgeo JV into context, EUA’s agreement to acquire the Monchetundra exploration licence began in April 2005 . They worked their way through drilling and studies to gain mining permits  and only got the flanks licence in August 2020 . 15 years of work (minimum). This JV offers us the opportunity to acquire the licences to 104.6Moz platinum equivalent that has already been through this entire process, including the feasibility study. Massive positive for an AIM exploration company and massive uplift in shareholder value despite what the SP says.
Combining MT with JV assets:
As per the circular released on 09/04/2021  “The Rosgeo JV aims to establish a world class PGM district on Kola with the Monchetundra asset as the cornerstone project.”. The company clearly are in a great position to sell on the entire Kola districts as it is advertised as a PGM and battery metals district. The reason I think it is all being sold together as opposed to selling MT and keeping the new Rosgeo JV assets is that:
They state Monchetuntra is cornerstone of the project. It can no longer be the cornerstone of the Kola district if it is sold off, splitting up the project.
- Company boasts strong negotiating power as the own MT. MT is the only mining licence there with anexclusivity radius. Selling it off therefore means we have no mining licence and giving away our advantage. With the additional assets we can now say that “if you want access to MT then you have to buy the lot”
- The information tells us that the 4 open pits that can use the current (or new) MT plan and infrastructure. If we sell MT then we would need another plan for the 4 new open pit assets or pay the buyer of MT to use the infrastructure that we just sold. Do not think our BOD would enjoy that idea.
- If we sold MT then a buyer would now be the dominant player in the region and we would be left with the JV assets but no mining licence and no guarantee that anyone would buy the remaining assets. Better say we will only part with MT if the additional assets are bought too. We win from a larger sale, Rosgeo win as they can piggyback on our sale to offload their licences and make money, the buyer wins as they get the entire region to themselves.
With all the great stuff above its easy to ask why the BOD need the power to allot shares. Surely, we can just sell the lot now. Well, there are any number of reasons but for me the simplest is usually the correct one. Simplest one being Japanese interest . The BOD state that they are:
“confident that the ability to allot securities and demonstrate a capacity to develop the Kola PGM and battery metals district independently of other strategic options available to the Company benefits the Company and its Shareholders by improving Eurasia’s negotiating position.”
They also announced out of the blue that ‘Eurasia Japan’ exists, that Tamerlan Abdikeev has been doing a grand old job bringing Japanese interest in our assets, and they made a point of mentioning that Japan Oil, Gas and Metals National Corporation (JOGMEC) took a 12.95% position in Hanwa’s acquisition of Platinum Group Metals Ltd in South Africa . We know that EUA do not pad out RNS announcements with fluff so there is a clear reason to mentioning JOGMEC and Hanwa. In my opinion, they will be involved in the sale and they are following the same model they used at Bushveld (i.e. Hanwa buy their position (or all of it) with JOGMEC support).
So, if the sale FSP is almost complete, how does raising cash benefit shareholders more than just selling now? A few reasons spring to mind. Some more realistic than others:
1.Rather than activate the Rosgeo earn out, we just buy the licences. See GMF78 calculations .
2. The additional 25% Rosgeo stake. Maybe the audit is complete, and we are going to buy the 25% so that we can sell it all. The RNS  states:
a.“Eurasia also has a call option to acquire 25% from Rosgeo after completion of thereserves audit under the JORC Code.”
3. There is 20% of MT out there in the ether that the BOD might have their sights on.
4. Could be anything else. One thing is for sure. The EGM is for the benefit of shareholder value. A massive turn out of PI voting in support of the BOD will speak volumes so make sure you getyour vote in. EUA 2021!
Thanks to A1ex, GMF78, K Knauf & Duggy for help compiling this information.