TIDMEUA
RNS Number : 5795N
Eurasia Mining PLC
10 May 2018
Eurasia Mining plc
("Eurasia", "EUA" or the "Company")
Strategic Financing to Reduce Debt Facility & Broker
Appointment
Eurasia Mining (LSE: EUA), the London Stock Exchange AIM quoted
platinum and gold producing mining company, is pleased to announce
details of a strategic placing to materially reduce the loan
facility arranged by Riverfort Global Capital Ltd (the "Riverfort
Loan" or "the Lender") announced 19 May 2017. In conjunction with
the part repayment the Lender has agreed that they will not convert
any of the remaining loan balance into new ordinary shares until 10
September 2018 at the earliest.
Highlights:
-- The Company has raised through a significantly oversubscribed
placing, gross proceeds of GBP500,000 through the placing of
166,666,667 new ordinary shares ("Placing Shares") at a price of
0.3 pence per share (the "Placing Price"), with a 1 for 1 attached
warrant exercisable at 0.6p up to and including 16(th) May 2020
("Placing Warrants");
-- Approximately GBP300,000 (being USD$400,000 based on today's
current exchange rate of USD1.35:GBP1) of the gross proceeds raised
is being used to reduce the loan arranged by Riverfort Global
Capital Ltd as announced 19 May 2017. The new balance remaining on
the Riverfort Loan will be approximately GBP440,000. The balance of
funds raised will be used for working capital.
-- As part of the repayment, the Lender has agreed to not
convert any of the remaining Riverfort Loan balance to new Ordinary
Shares for at least four months from today's date and in any case
not prior to 10 September 2018. Furthermore, no repayments on the
loan facility are due until 10(th) September 2018.
-- The term for the Placing Warrants are subject to an
accelerator whereby if the 10-day vwap (volume weighted average
price) of the Company's shares exceeds 1.8p then the Company can
elect to cause all Placing Warrants to be exercised within 5
business days with payment due 10 business days later, or otherwise
forfeited.
-- Eurasia Mining's West Kytlim project (68% owned) is the
second largest alluvial platinum reserve currently in the world.
Production has recommenced with a new contractor and equipment in
place, and is already demonstrating significantly increased levels
of raw platinum production and revenues, for the 2018 mining
season;
-- Eurasia Mining's major project is Monchetundra (80% owned),
which has state approved reserves and resources of 2 million ounces
of palladium equivalent and a total in-situ metal value of over
USD$2 billion at today's metal prices, before metal recoveries and
all costs, has progressed to the final stage of mining licence
approval (as announced 2(nd) February 2018). As announced 10(th)
October 2016, the Company has signed an EPC (engineering
procurement, construction) contract with Chinese state-owned
Sinosteel to design, fund and build a 1.7million tonnes per annum
PGM beneficiation project at Monchetundra.
Christian Schaffalitzky, Executive Chairman of Eurasia
commented: "It is timely and strategic to reduce and contain our
Riverfort Loan funding facility as the Company enters the next
phase of value growth.
"We are extremely pleased by the significantly increased levels
of raw platinum production already occurring at West Kytlim with
our new contractors and equipment in place to maximise the 2018
mining season. We eagerly anticipate the Monchetundra mine permit
now that it is in the final stage of the approval process.
"The board is focused on delivering value to shareholders and we
look forward to providing further updates to market over the coming
weeks and months."
Placing
The Company has raised gross proceeds of GBP500,000 through the
placing of 166,666,667 Placing Shares at a price of 0.3 pence per
share (the "Placing Price") raising gross proceeds of GBP500,000
from private clients of newly appointed joint-broker, First Equity
Limited.
The Placing incorporates the issue of warrants to subscribe for
166,666,667 new Ordinary Shares at an exercise price of 0.6 pence
per warrant (a 100% premium to the Placing Price) on the basis of 1
Placing Warrant per 1 Placing Share, with an exercise period of up
to 16 May 2020. If the Eurasia Mining share price exceeds a 10-day
volume weighted average price ("vwap") exceeding 1.8p during the
warrant term, the Company has the right to serve notice on warrant
holders to exercise warrants. Should the Company serve notice, any
Placing Warrants unexercised within the 5 business day time period
allowed would be cancelled.
The Placing Shares will be issued under the existing authorities
granted to the directors of the Company. Application will be made
for these New Ordinary Shares to be admitted to trading on AIM,
which is expected to take place on or around 16 May 2018. The New
Ordinary Shares will rank pari-passu with existing ordinary
shares.
A further 5,550,000 shares are issued to suppliers to the
company in lieu of accrued fees.
Appointment of Joint-Broker
The Company has appointed a new joint-corporate broker - First
Equity Limited, a London-based firm operating for over 30 years
with client assets administered by well-established third-party
custodians.
Total Voting Rights
In accordance with the provision of the Disclosure Guidance and
Transparency Rules of the FCA ("DTRs"), the issued ordinary share
capital of Eurasia following the Placing Shares being admitted to
trading shall be 2,030,585,874 Ordinary 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 calculation by which they
will determine whether they are required to notify their interest
in, or a change to their interest in, Eurasia under the DTRs.
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Enquiries:
Eurasia Mining PLC Tel: +44 (0)207 932 0418
Christian Schaffalitzky / Keith Byrne
WH Ireland Limited (Nominated Adviser & Broker) Tel: +44 (0)161 832 2174
Katy Mitchell / James Sinclair-Ford
First Equity Limited (Joint Broker) Tel: +44 (0)20 7374 2212
Jason Robertson
About Eurasia Mining PLC (LSE: EUA)
Eurasia Mining is a long-established platinum and gold focused
production and exploration company quoted on the London Stock
Exchange AIM market, with an operating mine in the Ural Mountains
and a USD$2 billion dollar valued in-situ multi-commodity deposit
at Monchetundra. In addition, Eurasia maintain an interest in the
Semonovsky Gold in Mine Tailings Project, an asset demonstrating
potentially low-cost near-term gold production potential.
Eurasia's two core projects are:
The West Kytlim operating mine (of which the Company owns 68%),
which is the second largest alluvial platinum reserve in the world
currently, with 3.283 kilograms of raw platinum in reserves, with
resources and resource potential to a further 10 tonnes of raw
platinum;
The Monchetundra Project (of which the Company owns 80%), has
state approved reserves and resources of 2 million ounces of
palladium equivalent (predominantly palladium, and includes 28,124
tonnes of copper and 30,410 tonnes of nickel), resulting in a total
in-situ metal value of approximately USD$2 billion, before metal
recoveries and all costs. Eurasia has in place (signed October
2016) an EPCF (Engineering Procurement Construction and Financing)
contract with Sinosteel, a state owned Chinese corporation focused
on mining.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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