Eurasia Mining signed a memorandum of understanding (MoU) to acquire the interest in the uranium project on 17 January 2011.
Optiva Securities is currently raising funds on behalf of ERA which is expected to be completed by 31 March 2011.
Pursuant to the MoU, an initial $1m is to be invested by ERA for a 10% interest in IMC Invest, a Kyrgyz company owning 100% of the Kamushanovskoye uranium project.
The funds will also be used to for a feasibility study on the project.
A first payment of $150,000 was made by Eurasia and rest will be paid this month from the ERA fundraise.
The remaining 45% is to be purchased through an initial payment of $50,000; monthly payments of $10,000 for a maximum of 12 months.
The terms will form part of a full contractual agreement to be completed in due course.
ERA will refund Eurasia the $150,000 payment when it completes its fundraising by the end of March.
Eurasia should retain a 39% stake in ERA and will provide management support.
Eurasia and Afrasia Mining & Energy Investment Holdings (AME) own 50% each of the share capital of ERA.
AME will hold a 32% interest and its subsidiary Kyrgyz Co, NuRanium (NuR) will provide local and technical expertise to ERA.
It is also the intention of Eurasia and AME that NuR will become a 99% owned subsidiary of ERA after completion of the funding.
