Eurasia Mining PLC Loan Agreement and Issue of Equity (4180S)
21 December 2016 - 6:00PM
UK Regulatory
TIDMEUA
RNS Number : 4180S
Eurasia Mining PLC
21 December 2016
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
Loan Agreement and Issue of Equity
Eurasia is pleased to announce that it has entered into a new
funding facility with a syndicate led by Sanderson Capital Partners
Limited ("Sanderson"), of up GBP1 million (this includes the
GBP500,000 drawn down under the previous loan arrangement with
Sanderson, announced on 1 August 2016). . The directors believe
this loan will provide the Company with sufficient working capital
for the immediate future, with cashflow generation from West Kytlim
due to begin in April when production commences.
The facility comprises the following;
- A GBP500,000 unsecured, interest free, fixed term loan due for
repayment no later than 15 May 2017
- The loan can be drawn down in two tranches of GBP150,000
tranches no less than 30 days apart and two tranches of GBP100,000,
with tranches two, three and four subject to successfully achieving
certain specified project deliverables;
- The option for Sanderson to include the GBP500,000 drawn down
from the previous arrangement with Eurasia (announced on 1 August
2016) into this facility (taking the total to GBP1m).
- A fee payable in 30,769,231 ordinary shares in the company
shall be issued as soon as is practicable to Sanderson as an
arrangement fee on signing.
- In addition, a drawdown fee of 15% will be paid by Eurasia to
Sanderson for each drawdown, and a further 15% fee will be paid if
Sanderson elects to include the previous GBP500,000 into the
facility.
Issue of Equity
Following the execution of the Agreement, the Company has today
issued new shares in lieu of both the arrangement fee and initial
drawdown fee. The total number of shares issued amounts to
33,581,731 ordinary shares ("New Shares") (30,769,231 in respect of
the arrangement fee, and a further 2,812,500 calculated as 15% of
GBP150,000 at a share price of GBP0.008).
Admission is expected to become effective on 29 December 2016
and the New Shares will rank pari passu in all respects with the
Company's existing Ordinary Shares in issues.
For the purposes of the Financial Conduct Authority's Disclosure
and Transparency Rules ("DTRs"), the issued ordinary share capital
of the Company following the allotment of the New Shares consists
of 1,497,373,790 Shares with voting rights attached (one vote per
Share). There are no Shares held in treasury. This total voting
rights figure may be used by shareholders as the denominator for
the calculations by which they will determine whether they are
required to notify their interests in, or a change to their
interest in, Eurasia under the DTRs.
Christian Schaffalitzky, Managing Director said: "We are pleased
to have arranged our financing with Sanderson, essential in
maintaining liquidity in the business without diluting our
shareholders, while allowing us to further our projects in Russia
through Q1 2017, as we anticipate the cash flow from our West
Kytlim project. We expect to provide a further strategic project
update before close of business for 2017.
Enquiries:
Eurasia Mining Plc
Christian Schaffalitzky/Michael de Villiers
+44 (0)207 932 0418
WH Ireland Limited
Katy Mitchell/Nick Prowting
+44 (0)161 832 2174
Beaufort Securities
Elliot Hance
+44 (0)207 382 8300
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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