Vancouver, British Columbia, October 19, 2009 (TSX Venture: EMX) - Eurasian Minerals Inc. (the “Company” or “EMX”) is pleased to announce the signing of an Agreement to acquire Bronco Creek Exploration Inc. (“BCE”), a privately owned Tucson, Arizona based mineral exploration company. BCE has a strong portfolio of gold and copper properties in key mining districts of Nevada, Wyoming, and Arizona. BCE has followed the same prospect generation business model as EMX, and the majority of its properties are currently being explored and funded under joint venture, lease/option, and exploration alliance agreements. This self-sustaining business model maximizes the opportunity for discovery, while preserving the company treasury. In addition to mineral property interests, BCE currently has over USD$1.0 million in tradable securities and cash, and the potential to generate a positive future revenue stream based upon current agreements that are in place. Upon completion of the acquisition, BCE will become a wholly-owned business unit of EMX, and will continue to focus on advancing and building the Western U.S. exploration property portfolio.
Terms of Agreement. The Agreement calls for issuance of 2,127,790 EMX units in exchange for 100% of BCE’s outstanding shares. Each unit will consist of one common share of EMX and one-half of a non-transferable common share purchase warrant. Each full warrant will entitle BCE shareholders to purchase one additional EMX share for a period of two years from the closing of the transaction at a purchase price of CDN$2.00 per share. Following completion of the acquisition, BCE shareholders will hold approximately 6.9% of the Company’s outstanding shares and, if the warrants issued to them (other than the half warrants referred to below) are exercised, they will hold approximately 10.0% of the Company’s outstanding shares. Finally, if a pending BCE advanced property acquisition is completed within 12 months of the closing date, an additional one-half warrant will be issued to BCE shareholders. Directors, officers and employees to, or consultants of EMX own approximately 5.0% of BCE’s outstanding shares and, upon closing of the transaction, will receive shares representing approximately 0.3% of the Company’s outstanding shares. The Agreement is subject to completion of due diligence reviews and regulatory approval, including any required approval of the TSX Venture Exchange.
About Bronco Creek Exploration. BCE is focused on the discovery of mineral deposits in the Western United States. Since beginning its exploration programs in 2006, BCE has acquired a portfolio of 14 mineral properties (comprising over 60,000 acres), ten of which are currently under joint venture, lease/option, or exploration alliance agreements. The BCE business model is to acquire mineral properties with excellent discovery potential, and then execute partnership agreements that create revenue streams from those properties. Funding for the development and advancement of BCE properties is exclusively provided by its exploration partners, and BCE typically maintains a minority carried interest in Joint Ventures or royalty interests in the mineral properties.
Bronco Creek Exploration’s Portfolio. BCE’s exploration portfolio consists of ten properties in Arizona, three properties in Nevada, and one property in north-eastern Wyoming. Current exploration partners include Freeport McMoRan Exploration Company (NYSE: FCX), Eldorado Gold Corp. (NYSE: EGO, TSX: ELD), Entrée Gold Inc. (NYSE: EGI, TSX: ETG), Golden Predator Royalty and Development Corp. (TSX-V: GPD), and Geo Minerals Ltd (TSX-V: GM). Highlights of BCE’s portfolio include:
- Superior West, Arizona - a 5,475 acre property west of Rio Tinto’s Resolution property holdings. Targets include porphyry copper, high grade manto, vein and replacement styles of mineralization.
- Copper Springs, Arizona - a 5,056 acre exploration property targeting a structurally dismembered portion of a porphyry copper deposit in the Globe-Miami district.
- Mineral Hill, Wyoming - a 1,520 acre exploration property targeting alkaline gold and copper and breccia pipe hosted gold mineralization near Newmont’s active Sundance exploration program and Goldcorp’s Wharf Mine.
- Richmond Mountain, Nevada - a 4,730 acre exploration property with gold and base metal mineralization to the east of Barrick’s Archimedes deposit in Eureka, Nevada.
- Silver Bell West, Arizona - a 3,760 acre exploration property with porphyry style copper and skarn mineralization adjacent to Asarco’s Silver Bell Mine.
Bronco Creek Exploration’s Team. BCE currently has six employees, all of which will join EMX as a result of the acquisition. The BCE team consists of:
- Dr. David Johnson, BCE President. David Johnson has more than 16 years of industry experience in generative exploration and consulting for major mining companies. David graduated from Colorado College in 1988 with a B.A. in geology, and later earned his PhD from the University of Arizona in 2000. David is a co-founder of Bronco Creek Exploration, and specializes in developing new exploration ideas and opportunities utilizing innovative geologic approaches. He is best known for his extensive work on Iron-Oxide-Copper-Gold (IOCG) deposits, and has co-authored review papers and taught numerous short courses on porphyry and IOCG systems.
- Dr. Eric Jensen, BCE Vice President. Eric Jensen has 14 years of industry experience, including mine-site and exploration geologic positions, as well as a consultant to several major mining companies. He is a graduate of Carleton College (B.A.) and received a Ph.D. in Economic Geology from the University of Arizona. Eric is a co-founder of BCE, and is best known for his work on alkaline gold systems and porphyry deposits. Eric has been an invited speaker at many conferences and symposiums and has taught short courses on mineral exploration internationally.
- Dr. David Maher, BCE Vice President of Target Generation. David Maher has 15 years of mineral exploration and mine geology experience in Arizona and Nevada. David is a graduate of the University of Wisconsin-Oshkosh (B.S.), Oregon State University (M.Sc.), and received his Ph.D. in Economic Geology from the University of Arizona. David is best known for his work on targeting structurally dismembered, concealed porphyry copper deposits in southeast Arizona.
- Erik Flesch, BCE Project Advancement Geologist. Erik manages the permitting, contracting, regulatory compliance, and other project advancement responsibilities for BCE. Erik earned a B.S. in Geosciences from the University of Arizona, and has experience in mine geology and deposit modeling.
EMX and the New BCE Business Unit. EMX has been a strong and early supporter of BCE, and holds a USD$500,000 convertible promissory note written to BCE in 2006. EMX’s initial investment in BCE provided the seed capital for many key BCE property acquisitions. This business combination represents a union of two companies that are intimately familiar with each other, and share the same prospect generation business model. The combination of BCE’s assets, generative exploration talent and business development skill sets will add substantially to EMX’s mineral property and royalty portfolio and exploration team. Further, the BCE business unit will compliment EMX’s programs by adding a U.S.-based business unit with assets in some of the world’s premier copper and gold provinces.
EMX is exploring and investing in a mineral property and royalty portfolio located in some of the most prospective, but under-explored mineral belts of the world.
Mr. David M. Cole, P.Geo., a Qualified Person as defined by National Instrument 43-101 and President and CEO of the Company, has reviewed and verified the technical information contained in this news release.
For further information contact:
|David M. Cole||Kim C. Casswell|
|President and Chief Executive Officer||Corporate Secretary|
|Phone: (303) 979-6666||Phone: (604) 688-6390|
|Email: email@example.com||Email: firstname.lastname@example.org|
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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.