Rus News Journal

To the British miners the Russian copper

the British company Eureka Mining has attracted declared carrying out dopemissii for the sum £ 8,3 million will direct Part of this money Eureka Mining on increase with 51 to 100 % of a share in Chelyabinsk Copper Company Ltd (SSS) which owns the copper is mountain - concentrating industrial complexes in the Chelyabinsk area, a part - on tehniko - an economic justification of working out of deposits. Thus the licence at one of belonging SSS GOKov is already withdrawn, same can occur to other Russian actives of the company.
it is originally right on three medno - porphyritic deposits of the Chelyabinsk area - Miheevsky (look-ahead stocks - 1,8 million tons of copper), Tarutinsky (1,3 million tons) and Tominsky (1,5 million tons) belonged created in 1997 Southern - the Ural mining company. Two Chelyabinsk businessmen - Vladimir Chechulin and Alexander Losev became its founders the government of the Chelyabinsk area which have received 97 % of actions, and. However later misters to Losev and Chechulinu managed to wash away a state block of shares to 5 %, and then to transfer GOKi registered by them in Great Britain companies SSS. The Chelyabinsk authorities have not reconciled to property loss and initiated judicial and criminal trials on property return.

in this situation of the Lord Losev and Chechulin have hastened to get rid of copper actives. On January, 13th, 2005 souchrediteli SSS have sold 51 % of its actions British Eureka Mining for $250 thousand Besides, businessmen have concluded with British an option for sale of the remained package at the price of $6 million

Change of proprietors SSS has not cooled a heat of the Chelyabinsk authorities which have in the end of the last year asked Ministry for Protection of the Environment and Natural Resources to check up performance of the licence agreement on geological prospecting of the Tarutinsky deposit. It was found out that on geological prospecting the GOK with the same name has not executed terms, therefore soon at it the licence has been withdrawn. However by June Eureka Mining has managed to find the compromise with the regional authorities. In particular, the company has promised to return administrations the investments enclosed by it into geological prospecting of copper deposits, and also to invest in their development $300 million

Yesterday details of realisation of the given agreement became known. According to the London stock exchange placed on a site (LSE) information, board of directors Eureka Mining has appointed to September, 26th meeting of shareholders with the summons about carrying out dopemissii at a rate of 40,6 % from an authorised capital stock for the sum £ 8,3 million Action will be placed in sector of off-exchange trade LSE. From them £ 3,3 million ($6 million) it will be directed on performance of an option for the repayment of the remained 49 % of actions SSS. Still £ company intends to enclose 2,2 million in the FEASIBILITY REPORT of working out of copper deposits.

however there is a probability what to execute all plans of the company it will not be possible. Before to spend the FEASIBILITY REPORT, it should return Tarutinsky GOK which Ministry for Protection of the Environment and Natural Resources prepares for repeated auction (its date in the property it is not appointed yet). Moreover, the probability of loss Eureka Mining and two others GOKov is great. Not so long ago Rosprirodnadzor has found out infringement of the licence agreement in work Miheevsky GOKa and has demanded to eliminate them in three-monthly term. As has explained a source close to CHeljabinsknedram (division of Federal agency on nedropolzovaniju which is a part of Ministry for Protection of the Environment and Natural Resources), similar infringements to eliminate for three months it is almost unreal . By data, there are claims and to performance of terms of geological prospecting Tominsky GOKom. In Eureka Mining to make comments on a situation yesterday have refused.

will watch succession of events.