Washington, DC/ Port au Prince, Haiti, February
19, 2010 — IFC, a member of the World Bank Group, will invest 5.3
million Canadian dollars in Eurasian Minerals Inc to support the company’s
gold and copper exploration in Haiti and its other exploration work around
the world. This investment reaffirms IFC’s commitment to social and economic
growth in Haiti. It also comes at a critical time for supporting the country’s
recovery through private sector participation.
This is IFC’s first exploration and mining
investment in Haiti, a country whose natural resources have the potential
to create much needed jobs and government revenues. Eurasian, a Canadian-based
mining exploration company listed on the TSX Venture Exchange (EMX), currently
provides employment to up to 800 workers in northern Haiti through an innovative
program of short shifts at its exploration sites, which allows more job
opportunities for local workers.
“IFC’s support of Eurasian Minerals is sending
an important signal to the rest of the world that we are confident and
supportive of Haiti’s recovery. We look forward to beginning a long-term
partnership with IFC and will draw heavily on their global environmental
and social expertise”, said David Cole, CEO of Eurasian Minerals Inc.
“In these times, it is more important
than ever for IFC to support responsible companies wanting to invest and
have a positive impact in Haiti”, said Somit Varma, Global Head of IFC’s
Oil, Gas, Mining and Chemicals Department. “We are excited to be
able to support the development of a mining sector in Haiti, which will
hopefully result in economic growth opportunities for the country.”
IFC will help ensure that exploration and
any possible future mine development is carried out in an environmentally
and socially sustainable manner. Eurasian, in collaboration with its joint
venture partner Newmont Ventures Limited, has already demonstrated its
commitment to the people of Haiti by delivering freight containers of medical
supplies, food and water and using its vehicles to assist the relief efforts
with local transportation of people and supplies.
“We are pleased to see this project materialize
now. We are currently engaging with clients in Haiti and identifying ways
to help them contribute to reconstruction and economic recovery,” said
Vincent Gouarne, IFC Director for Latin America and the Caribbean. “The
private sector will have a key role to play in the reconstruction of Haiti,
as has been the case in other natural disasters.”
In the past three years, IFC has ramped up
its investment and advisory operations in Haiti with focus on promoting
access to finance, infrastructure development, including telecom and energy,
and supporting textile and manufacturing companies. Since 2006, IFC has
committed $61 million in investment projects in Haiti's private sector.
In addition, IFC’s advisory operations include training to improve managerial
skills of local SMEs, and improving regulatory frameworks to attract investment.
IFC is the only international financial institution
focused exclusively on the private sector, the engine of sustainable development
in emerging markets. Along with IBRD, it is currently seeking a capital
increase to strengthen its ability to create opportunity for the poor in
developing countries—including by investments to help Haiti’s recovery.
Legal Disclosure about IFC's Investment
The investment of $5,272,590.60 million
Canadian dollars in Eurasian Minerals Inc. will result in IFC acquiring
2,559,510 units issued by Eurasian Minerals Inc. The units comprise an
aggregate of 2,559,510 common shares and 1,919,633 warrants, each of the
warrants entitling the holder to purchase one common share of Eurasian
Minerals Inc. at an exercise price of $2.88 Canadian dollars per common
share at any time after the closing date and until the earlier of (a) three
years from the date on which drilling under a drilling program commences
on the Treuil/La Mine license area in Haiti, or (b) five years after the
date of execution of the subscription agreement. The issue price per unit
is $2.06 Canadian dollars.
Based on the 29,118,645 outstanding common
shares of Eurasian Minerals Inc., IFC will own 8.1 percent of the outstanding
common shares upon completion of the transaction and, assuming the warrants
are exercised in full, 13.3 percent of the outstanding common shares.
The transaction is expected to close by the
end of March, 2010.
IFC is acquiring the units for investment
purposes as described above. IFC may, in the future, take such actions
in respect of its holdings as IFC deems appropriate in light of the circumstances
To obtain a copy of the report filed with
the Canadian securities regulatory authorities in respect of which this
news release relates, please contact Josef Skoldeberg at the phone number
or email address referred to above. IFC’s headquarters are located at
2121 Pennsylvania Avenue, N.W., Washington, D.C., 20433, USA.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
EMX is a TSX Venture Tier 1 company exploring
and investing in a mineral property portfolio located in some of the most
prospective, but under-explored mineral belts of the world. EMX’s
flagship program is in Haiti, with over 2,800 square kilometers of exploration
ground in a new, emerging gold belt. EMX’s Haiti program, established
in 2006, has led to new gold-silver-copper discoveries, as well as the
acquisition of properties with historic mineral resources. EMX has
Joint Venture and Regional Exploration Alliance agreements in Haiti with
Newmont Ventures Limited. The Company also has business units exploring
in Turkey, the Kyrgyz Republic, Europe, Asia-Australia, and western North
America. EMX follows the prospect generation business model, with
many properties being explored and funded under royalty, joint venture,
lease/option, and exploration alliance agreements.