Eurasian Minerals Inc. (the "Company" or "EMX") (TSX VENTURE:EMX)(NYSE MKT:EMXX) is pleased to announce that it has entered into three exploration and earn-in agreements, through its wholly-owned subsidiary Bronco Creek Exploration Inc., with Savant Explorations Ltd. (TSX VENTURE:SVT) ("Savant") for the Jasper Canyon, Buckhorn Creek, and Frazier Creek porphyry copper projects (each a "Project" and collectively the "Projects"). The Jasper Canyon and Buckhorn Creek Projects are located in the Laramide porphyry copper belt of southern Arizona and the Frazier Creek Project is located in the Battle Mountain-Eureka trend of north-central Nevada. The Projects lie in geologically complex areas where mineralizing systems have been structurally dismembered, tilted, and largely covered by post-mineral rocks. Recognition of the post-mineral structural relationships, and application of alteration and mineral zoning patterns and geochemical signatures in that context, has identified untested porphyry copper targets at each of the three Projects.
Overview of Commercial Terms for Each Project. Each of the Projects - Jasper Canyon, Buckhorn Creek and Frazier Creek - is covered by a separate exploration and earn-in agreement. Pursuant to each Project earn-in agreement, Savant can earn an initial 60% interest in the Project by completing a total of $2,070,000 (all dollar amounts in USD) in work expenditures, delivering 800,000 shares of Savant, reimbursing EMX's 2013-2014 property holding costs, and paying a total of $342,500 in several tranches over a five year period. In addition, for each Project, upon completion of an NI 43-101 compliant preliminary economic assessment ("PEA"), Savant will make an additional payment to EMX of $75,000.
For each Project, if Savant elects to form a JV, EMX may elect not to participate in the JV and instead exchange its 40% interest for a 2.5% NSR royalty, in which event the annual advanced royalty payments will be $50,000 for the first and second anniversaries, $75,000 for the third and fourth anniversaries, and $100,000 annually thereafter. The obligation to make annual advanced royalty payments will cease upon the earlier of production or the 20th anniversary of the royalty agreement.
For each Project, Savant may purchase a total 0.5% NSR royalty out of the EMX NSR royalty by, first, purchasing a 0.25% NSR royalty within 90 days after Savant's decision to advance the project following completion of a feasibility study for $750,000 and then, if Savant has purchased the initial 0.25% royalty, purchasing an additional 0.25% out of the EMX royalty any time prior to production for $1,250,000.
