Eurasian acquired the Viscaria copper-iron royalty, as well as other major in-country assets, in 2010 from Freeport-McMoRan Exploration Corporation. EMX has a 1% NSR royalty on Viscaria production and initially will pay half of the royalties, up to a maximum of US $12 million, to Outokumpu Oyj. This yields an effective 0.5% NSR royalty until the payment cap is reached, at which point EMX will retain a full 1% NSR royalty payment.
The Viscaria copper-iron project occurs in the world-class Kiruna IOCG mining district, and is within two kilometers of LKAB's Kirunvaara iron mine, which is the largest in Europe. Mineralization occurs as three north-northeast trending stacked horizons containing copper (the A and B zones) and iron (D zone) that are hosted in Precambrian rocks of the Kiruna Greenstone Group.
Viscaria is being developed by Avalon Minerals Ltd. (ASX: AVI), and has updated mineral resource estimates and a scoping study that outlines the project's mining upside. Avalon has also identified new exploration targets for follow-up where mineralization is open at depth and along strike.