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 then existing.
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.
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