Eurasia Mining has agreed to offload its West Kytlim operations in the Urals amid concerns over its nationalisation.
The company has accepted proposed terms for a sale agreement to divest its stake in Kosvinsky Kamen, the entity that holds the West Kytlim alluvial platinum group metals (PGM) and gold operations in Russia.
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The buyer is a Russian firm, whom Eurasia describes as a “non-sanctioned infrastructure” business engaged in “transportation, infra-structure development, retail sales and information technology development and management”.
The transaction values the loss-making asset at about $251m, while the buyer is due to pay Rbs671.2m, (roughly $9m), under the sale agreement.
The company said the difference between the valuation and the anticipated proceeds is due to Russian regulations enacted amid geopolitical tensions and sanctions, which limit how much foreign owners are legally allowed to receive from the sale of Russian assets.
“Whilst this represents a significant discount, the Board believes it is preferable to take this opportunity now,” the filing read.
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By GlobalDataEurasia, which mines iridium, osmium, palladium, platinum, rhodium, ruthenium and gold, pointed to heightened risks around its non-core West Kytlim asset, which holds only 0.3% of group of its reserves.
The risks include potential nationalisation and elevated operating and disposal taxes.
In a stock exchange filing, the company said it looks to address these regulatory risks in the Urals through the deal and shift focus on its Arctic portfolio that accounts for 99.7% of its reserves.
The group described the planned disposal as the outcome of a sale process and aligned it with efforts to streamline its asset base and focus on higher-value projects on the Kola Peninsula in the Arctic region.
It also noted that its Arctic assets are covered by an agreement with the state-owned Far East and Arctic Development Corporation.
If completed, the sale is expected to provide non-dilutive funding to support development of the group’s remaining Arctic portfolio, encompassing the Tier 1 nickel-copper deposit NKT.
Independent third-party estimates place the net present value (NPV) of the NKT Tier-1 nickel-copper asset alone at $1.2bn to $1.7bn.
It added that Kosvinsky Kamen will transfer the Travyanaya licence to the group as part of the deal, meaning Eurasia will keep the licence after completion.
The board said the sale is in the “best interests of the company” and has unanimously recommended shareholders to vote in its favour. It said company directors and management will vote in favour for their collective 19% holding.
A general meeting of shareholders is scheduled for 15 January 2026.
