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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Eurasia Mining Plc | LSE:EUA | London | Ordinary Share | GB0003230421 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.50 | 1.45 | 1.55 | 1.50 | 1.436 | 1.50 | 2,646,674 | 08:00:14 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Miscellaneous Metal Ores,nec | 120k | -5.84M | -0.0020 | -7.50 | 42.97M |
From Apr 2019 to Apr 2024
TIDMEUA
RNS Number : 7627R
Eurasia Mining PLC
26 September 2017
26 September 2017
Eurasia Mining plc
("Eurasia" or the "Company")
Interim Results for the six months ended 30 June 2017
Eurasia Mining plc, the platinum, palladium, iridium, rhodium and gold production company, announces its interim results for the six months ended 30 June 2017.
CHAIRMAN'S STATEMENT
I am pleased to report to you as Executive Chairman of the board for the first time, for these, our 2017 interim accounts. On behalf of the Company, allow me to extend again a heartfelt thank you to Michael Martineau for his long years of service to the Company on his retirement as non-executive chairman earlier this year.
Over the last few months there has been continued progress in the development of our projects which I have outlined in the operational update below. Our operating mine at West Kytlim complements our Monchetundra asset, which is nearing the end of feasibility, and these, together, create an integrated pipeline of PGM assets. Our people both in Russia and in London, continue to focus their attention on the Company's core strategy of developing these two key assets, while also pursuing potential openings at other projects throughout Russia, such as the Semenovsky tailings project where our exclusivity was extended recently.
In addition, we greatly welcome the turnaround in the mining sector in the past twelve months, and the consequent upswing in commodity prices.
I would like to take this opportunity to thank all of our shareholders, stakeholders and employees for their continued support and look forward to updating the market with our progress over the coming months.
Christian Schaffalitzky
Executive Chairman
OPERATIONS UPDATE
Monchetundra
A 1.9 million ounce (reserve and resource) PGM (palladium and platinum) deposit with significant base metal credits in final stage of feasibility, in the Kola Peninsula, north west Russia
Progress through the permitting process at Monchetundra continues as planned. The Company, through our local Russian subsidiary, filed for a Discovery Certificate for the already state approved reserves and resources of 1.9 million ounces PGM at two open-pittable deposits six kilometres southwest of the town of Monchegorsk on the Kola Peninsula. The Discovery Certificate was issued in mid-July, marking another milestone for the project and the Company. The Discovery Certificate also attributes mining rights to other metals in the reserves approved, namely; gold - 2,139 kilogrammes, copper - 28,124 tonnes and nickel - 30,401 tonnes.
As well as advancing the permitting process towards the submission of a mining license application, the Company has been busy developing working relationships with key service contractors and working on potential business partnerships in metal streaming, and down-stream sales. In order to apply for a mining license Eurasia will be required to have contracts with service providers in place, to cover mine design, blasting, mine surveying, ecological monitoring and land rehabilitation. These contracts have now been assigned ahead of the official submission of the mining license application. In addition, discussions are ongoing with local and international companies seeking quality, low sulphide feed stocks for their PGM smelting facilities.
As the project gets closer to becoming a producing mine it is important to understand the market for PGM and base metal concentrates, and the companies that are capable of processing life of mine output into palladium, platinum, gold, nickel and copper products. Discussions are also ongoing with royalty companies. Most recently, a non- disclosure agreement has been signed with Silver Wheaton Inc, a Canadian based royalty streaming company, to discuss the potential of its commercial involvement. Interested parties also include Glencore and Sinosteel, with whom an Engineering, Procurement, Construction and Financing ("EPCF") contract was agreed in October of 2016 providing access to finance with which to build the plant at the Monchetundra mine. The EPCF contract includes financing of $150 million as a 10 year facility at 6m LIBOR plus 3.5 per cent. Further updates will be provided should any of these arrangements progress.
A total in-situ value calculation based on metal prices in September 2017, undertaken by Eurasia, amounts to more than $2.0 billion,-a significant increase on the $1.7 billion calculated in July of this year. As a result of the price gains made in the Monchetundra 'metals basket', but particularly in palladium, the Company is now considering a re-estimation of the reserves at Monchetundra; as the palladium and platinum prices approach parity, ore bodies contoured in terms of palladium equivalent (a basket of palladium and platinum) change, such that new parts of ore bodies become economic. At the time of writing, the year to date increase in palladium price was 32.5 per cent (source: Kitco.com)
The application for a mining permit for the Monchetundra License is expected to be made in the fourth quarter of this year, its exact timing is uncertain due to the further clearance that is required at various local and state commissions. The award of the mining license may occur six to 12 months after submission. For comparison, the mining right at the West Kytlim Mine was assigned within eight months of submission of the application.
West Kytlim
An operating alluvial platinum and gold mine in the Ural Mountains
Mining at West Kytlim, Eurasia's operating platinum, gold, iridium and rhodium mine in the Ural Mountains has progressed following a later than scheduled start up in mid-May 2017. An increase in reserves was calculated earlier in the Spring, owing to higher than expected mining grades and ore body extensions discovered in the 2016 mining season. These reserves were assimilated into the 2017 mining allotment.
Eurasia continues to work in partnership with Regionmetall, the mining contractor at the project, in developing the project reserves and resources, which currently stand at 2,283 kilogrammes of raw platinum in reserves and 1,400 kilogrammes of platinum in resources.
Capital expenditure, and the majority of operating costs, are being met by Regionmetall for a consideration of 70 per cent of top line sales. Various adaptations and improvements to the processing scheme used last year by Regionmetall were tested in the opening weeks of the 2017 season and modifications made to the series of vibrating screens. These were changes to how oversize material is managed before smaller particle sizes proceed to a five-track sluice.
In parallel with the mining operation, work continues in developing the resources and reserves ahead of mining. A total of 1,490 meters of resource upgrade drilling was completed earlier in the year, at the Bolshaya Sosnovka and Kluchiki areas. Samples were subsequently assayed and reserve estimation is being prepared which will allow conversion of C2 category reserves to C1 category reserves. This work, managed by Eurasia but funded by Regionmetall, ensures mineable reserves for the 2018 and 2019 mining seasons. A further 390 metres of large diameter infill sampling is planned for the autumn of this year.
As has previously been announced, the mining season commenced later than planned and therefore, Regionmetall failed to reach the production quota outlined in an agreement that was entered into in January 2017. Therefore, in accordance with the agreement, the exclusivity granted to Regionmetall as mining contractors was automatically rescinded. Owing to the distributed nature of the reserves and resources throughout the 36 square kilometre license, Eurasia have begun to look for further experienced mining contractors to work in tandem with Regionmetall thereby increasing mine output considerably and improving project economics through a shortened life of mine. Discussions are now ongoing with several groups.
Semenovsky Tailings Project
A feasibility stage project recovering gold and silver from old mine tailings
The Semenovsky Project, over which we have extended our exclusivity until the end of November 2017, remains of interest to Eurasia due to its simple processing scheme and short lead time to production. Tailings projects are a proven route to early cash flow for junior miners and explorers and we continue to seek a way to finance its development.
Enquiries:
Eurasia Mining Plc
Christian Schaffalitzky/Michael de Villiers
+44 (0)207 932 0418
WH Ireland Limited
Katy Mitchell
+44 (0)161 832 2174
Beaufort Securities
Elliot Hance
+44 (0)207 382 8300
Blytheweigh
Tim Blythe/Camilla Horsfall
+44 (0)207 138 3204
Condensed consolidated statement of comprehensive in come
for the six months ended 30 June 2017
Hot Features
Premium
Note 6 months 12 months 6 months
to to to
30 June 31 December 30 June
2017 2016 2016
(unaudited) (audited) (unaudited)
Revenue 26,525 139,862 -
Cost of sales 6 (35,554) (130,688) -
------------------------------------- ----- ------------- ------------ ------------
Gross (loss)/profit (9,029) 9,174 -
Administrative costs (509,621) (654,263) (245,679)
Finance costs (503,610) (224,814) (95,000)
Other gains and losses 4 (84,252) 1,864,143 1,195,769
(Loss)/profit before tax (1,106,512) 994,240 855,090
------------------------------------- ----- ------------- ------------
Income tax expense - - -
------------------------------------- ----- ------------- ------------ ------------
(Loss)/profit for the period (1,106,512) 994,240 855,090
Other comprehensive (loss)/income:
Items that will not be reclassified
subsequently to
profit and loss:
NCI share of foreign exchange
differences on translation
of foreign operations (5,381) (132,190) (81,027)
Items that will be reclassified
subsequently to
profit and loss:
Parents share of foreign
exchange differences on
translation
of foreign operations (67,836) (248,650) (178,733)
Other comprehensive loss
for the period, net of tax (73,217) (380,840) (259,760)
------------------------------------- ----- ------------- ------------ ------------
Total comprehensive (loss)/income
for the period (1,179,729) 613,400 595,330
===================================== ===== ============= ============ ============
(Loss)/profit for the period
attributable to:
Equity holders of the parent (1,117,078) 740,265 660,512
Non-controlling interest 10,566 253,975 194,578
(1,106,512) 994,240 855,090
------------------------------------- ----- ------------- ------------ ------------
Total comprehensive (loss)/income
for the period attributable
to:
Equity holders of the parent (1,184,914) 491,615 481,779
Non-controlling interest 5,185 121,785 113,551
(1,179,729) 613,400 595,330
------------------------------------- ----- ------------- ------------ ------------
Basic (loss)/profit (pence
per share) (0.07) 0.05 (0.03)
Basic and diluted (loss)/profit
(pence per share) (0.07) 0.05 (0.03)
Condensed consolidated statement of financial position
As at 30 June 2017
Note At 30 At 31 At 30
June December June 2016
2017 2016
(unaudited) (audited) (unaudited)
ASSETS
Non-current assets
Property, plant and equipment 5 4,449,913 4,402,272 25,947
Assets in the course of
construction 39,934 39,216 -
Intangible assets 6 859,335 813,135 4,222,933
Investments in joint operations 44,495 44,131 -
Other financial assets 7 463,077 489,312 449,589
Total non-current assets 5,856,754 5,788,066 4,698,469
--------------------------------- ----- -------------- -------------- --------------
Current assets
Inventories 12,774 23,844 628
Trade and other receivables 157,104 149,146 240,381
Cash and bank balances 450,980 154,674 183,591
Total current assets 620,858 327,664 424,600
--------------------------------- ----- -------------- -------------- --------------
Total assets 6,477,612 6,115,730 5,123,069
================================= ===== ============== ============== ==============
EQUITY
Capital and reserves
Issued capital 8 25,755,493 25,577,993 24,912,402
Reserves 9 3,288,291 3,281,842 3,351,759
Accumulated losses (23,661,978) (22,544,900) (22,624,653)
--------------------------------- ----- -------------- -------------- --------------
Equity attributable to equity
holders of the parent 5,381,806 6,314,935 5,639,508
Non-controlling interest (670,208) (675,393) (683,627)
--------------------------------- ----- -------------- -------------- --------------
Total equity 4,711,598 5,639,542 4,955,881
--------------------------------- ----- -------------- -------------- --------------
LIABILITIES
Non-current liabilities
Borrowings 10 389,802 - -
Total non-current liabilities 389,802 - -
--------------------------------- ----- -------------- -------------- --------------
Current liabilities
Borrowings 10 1,091,633 318,314 -
Trade and other payables 284,579 157,874 167,188
Total current liabilities 1,376,212 476,188 167,188
--------------------------------- ----- -------------- -------------- --------------
Total liabilities 1,766,014 476,188 167,188
--------------------------------- ----- -------------- -------------- --------------
Total equity and liabilities 6,477,612 6,115,730 5,123,069
================================= ===== ============== ============== ==============
Condensed statement of changes in equity
For the six months ended 30 June 2016
Attributable to owners of the parent
---------------------------------------------------------------------------------
Foreign Total
currency attributable
Share Share Deferred Other translation Accumulated to owners Non-controlling Total
Note capital premium shares reserves reserve losses of parent interest equity
Balance at 1 January
2016 1,269,043 15,890,910 7,025,483 3,542,694 (12,202) (23,285,165) 4,430,763 (797,178) 3,633,585
Issue of ordinary
share capital for
cash 115,456 549,010 - - - - 664,466 - 664,466
Issue of shares
in lieu of loan
interest 15,910 71,590 - - - - 87,500 - 87,500
Issue of ordinary
share capital for
professional services 4,545 20,455 - - - - 25,000 - 25,000
Share issue cost - (50,000) - - - - (50,000) - (50,000)
Transaction with
owners 135,911 591,055 - - - - 726,966 - 726,966
----------------------- ----------- ------------ ----------- ----------- ------------ -------------- ------------- ---------------- -----------
Profit for the period - - - - - 660,512 660,512 194,578 855,090
Other
comprehensive
loss
Exchange differences
on translation
of foreign operations - - - - (178,733) - (178,733) (81,027) (259,760)
Total comprehensive
income - - - - (178,733) 660,512 481,779 113,551 595,330
Balance at 30 June
2016 1,404,954 16,481,965 7,025,483 3,542,694 (190,935) (22,624,653) 5,639,508 (683,627) 4,955,881
======================= =========== ============ =========== =========== ============ ============== ============= ================ ===========
Condensed statement of changes in equity
For the six months ended 30 June 2017
Attributable to owners of the parent
---------------------------------------------------------------------------------
Foreign Total
currency attributable
Share Share Deferred Other translation Accumulated to owners Non-controlling Total
Note capital premium shares reserves reserve losses of parent interest equity
Balance at 1 January
2017 1,509,788 17,042,722 7,025,483 3,542,694 (260,852) (22,544,900) 6,314,935 (675,393) 5,639,542
Shares issued under
terms of financing
arrangements 33,262 144,237 - - - - 177,499 - 177,499
Recognition of equity
element of
convertible loan notes - - - 74,286 - - 74,286 - 74,286 Transaction with owners 33,262 144,237 - 74,286 - - 251,785 - 251,785 ----------------------- ----------- ------------ ----------- ----------- ------------ -------------- ------------- ---------------- ------------- Loss for the period - - - - - (1,117,078) (1,117,078) 10,566 (1,106,512) Other comprehensive loss Exchange differences on translation of foreign operations - - - - (67,836) - (67,836) (5,381) (73,217) Total comprehensive income - - - - (67,836) (1,117,078) (1,184,914) 5,185 (1,179,729) Balance at 30 June 2017 1,543,050 17,186,959 7,025,483 3,616,980 (328,688) (23,661,978) 5,381,806 (670,208) 4,711,598 ======================= =========== ============ =========== =========== ============ ============== ============= ================ =============
Condensed consolidated statement of cash flows
for the six months ended 30 June 2017
At 30 At 31 December At 30
June 2017 2016 June 2016
(unaudited) (audited) (unaudited)
Cash flows from operating
activities
(Loss)/profit for the period (1,106,512) 994,240 855,090
Adjustments for:
Depreciation and amortisation
of non-current assets:
- Fixed assets 157 17,635 937
Net foreign exchange loss/(profit) 84,252 (1,959,358) (1,195,769)
Finance costs 503,610 224,814 95,000
Costs recognised in income
statement in respect of
equity-settled share-based
payments - 25,000 25,000
Impairment loss recognised - 95,215 -
on trade and other receivables
(518,493) (602,454) (219,742)
Movements in working capital
Increase in inventories (9,453) (23,530) (352)
Decrease in trade and other
receivables 10,671 46,371 18,622
Increase/(decrease) in trade
and other payables 127,916 (203,036) (175,000)
Cash used in operations (389,359) (782,649) (376,472)
Net cash used in operating
activities (389,359) (782,649) (376,472)
--------------------------------------- ------------- --------------- -------------
Cash flows from investing
activities
Contributed to joint operations (364) (44,131) -
Payments for property, plant
and equipment (146,883) (3,578) (606)
Invested into assets under
construction (1,375) (39,216)
Payments for other intangible
assets (67,619) (620,416) (197,141)
Net cash used in investing
activities (216,241) (707,341) (197,747)
--------------------------------------- ------------- --------------- -------------
Cash flows from financing
activities
Proceeds from issues of
equity shares - 818,557 664,466
Payment for share issue
costs - (50,000)
Proceeds from borrowings 1,661,296 892,500 242,500
Repayment of borrowings (750,000) (250,000) (250,000)
Net cash generated by financing
activities 911,296 1,461,057 606,966
--------------------------------------- ------------- --------------- -------------
Net increase/(decrease)
in cash and cash equivalents 305,696 (28,933) 32,747
Effects of exchange rate
changes on the balance of
cash held in foreign currencies (9,390) 78,682 45,919
Cash and cash equivalents
at the beginning of period 154,674 104,925 104,925
Cash and cash equivalents
at the end of the period 450,980 154,674 183,591
======================================= ============= =============== =============
Selected notes to the condensed consolidated financial statements
for the six months ended 30 June 2017
1. General information
Eurasia Mining plc (the "Company") is a public limited company incorporated and domiciled in Great Britain with its registered office and principal place of business at 2nd Floor, 85-87 Borough High Street, London SE1 1NH. The Company's shares are listed on AIM, a market of the London Stock Exchange. The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of platinum group metals, gold and other minerals in Russia.
The financial information set out in these condensed interim consolidated financial statements (the "Interim Financial Statements") do not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2015, prepared under International Financial Reporting Standards (the "IFRS"), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified. The report did not contain a statement under Section 498(2) of the Companies Act 2006.
2. Basis of preparation
The Group prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) ,as endorsed by the European Union (EU). These condensed consolidated interim financial statements for the period ended 30 June 2017 have been prepared by applying the recognition and measurement provisions of IFRS and the accounting policies adopted in the audited accounts for the year ended 31 December 2016.
These Interim Financial Statements have been prepared under the historical cost convention.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.
The Interim Financial Statements are presented in Pounds Sterling (GBP), which is also the functional currency of the parent company.
3. Accounting policies
The Interim Financial Statements have been prepared in accordance with the accounting policies adopted in the Group's last annual financial statements for the year ended 31 December 2016.
4. Other gains and losses
30 June 31 December 30 June
2017 2016 2016
GBP GBP GBP
Impairment loss recognised - (95,215) -
on trade and other receivables
Net foreign exchange gain/loss (84,252) 1,959,358 1,195,769
(84,252) 1,864,143 1,195,769
================================= ========== ============ ===========
Selected notes to the consolidated financial statements
for the six months ended 30 June 2017 (continued)
5. Property, plant and equipment
30 June 31 December 30 June
2017 2016 2016
GBP GBP GBP
Net book value at the beginning
of period 4,402,272 24,375 24,375
Additions 146,883 3,578 606
Transferred from intangible - 4,388,797 -
assets
Depreciation (157) (17,635) (937)
Exchange differences (99,085) 3,157 1,903
Net book value at the end
of period 4,449,913 4,402,272 25,947
================================== =========== ============ ========
6. Intangible assets
30 June 31 December 30 June
2017 2016 2016
GBP GBP GBP
Net book value at the beginning
of period 813,135 3,200,726 3,200,726
Additions 67,619 620,416 197,141
Transferred to mining asset - (4,388,797) -
Exchange differences (21,419) 1,380,790 825,066
Net book value at the end
of period 859,335 813,135 4,222,933
================================== ========== ============= ===========
Intangible assets represent capitalised costs associated with Group's exploration, evaluation and development of mineral resources
7. Other financial assets
30 June 31 December 30 June
2017 2016 2016
Advances to acquire interest
in uranium project 463,077 489,312 449,589
463,077 489,312 449,589
=============================== ========= ============ =========
Advances to acquire interest in uranium project represent payment of $602,000 made in 2011 towards acquisition of 55% interest in the Kamushanovsky uranium project in Kyrgyzstan translated using the prevailing rate of exchange at the end of reporting period.
Selected notes to the consolidated financial statements
for the six months ended 30 June 2017 (continued)
8. Share capital
30 June 31 December 30 June
2017 2016 2016
Issued ordinary shares
with a nominal value of
0.1p:
Number 1,404,954,237 1,509,787,583 1,404,954,237
Nominal value (GBP) 1,404,954 1,509,788 1,404,954
Fully paid ordinary shares carry one
vote per share and carry the right
to dividends.
Issued deferred shares
with a nominal value of
4.9 p:
Number 143,377,203 143,377,203 143,377,203
Nominal value (GBP) 7,025,483 7,025,483 7,025,483
Deferred shares have the following rights and restrictions attached to them:
- they do not entitle the holders to receive any dividends and distributions;
- they do not entitle the holders to receive notice or to attend or vote at General Meetings of the Company;
- on return of capital on a winding up the holders of the deferred shares are only entitled to receive the amount paid up on such shares after the holders of the ordinary shares have received the sum of 0.1p for each ordinary share held by them and do not have any other right to participate in the assets of the Company.
The increase in the Company's issued share capital during the reporting period occurred as follows:
Ordinary shares Number Share Share
of shares capital premium
GBP GBP
Balance at 1 January 2017 1,509,787,583 1,509,788 17,042,722
Share placing for cash
Issue of ordinary share
capital for professional
services
Shares issued under terms
of financing arrangements 33,262,906 33,262 144,237
Cost of issue of shares -
Balance at 30 June 2017 1,543,050,489 1,543,050.0 17,186,959
============================= =============== ============= ============
Deferred shares Number Deferred
of deferred share
shares capital
GBP
Balance at 1 January and
30 June 2017 143,377,203 7,025,483
============================= =============== ============= ============
Selected notes to the consolidated financial statements
for the six months ended 30 June 2017 (continued)
9. Reserves
30 June 31 December 30 June
2017 2016 2016
GBP GBP GBP
Capital redemption reserve 3,539,906 3,539,906 3,539,906
Foreign currency translation
reserve (328,688) (260,852) (190,935)
Equity-based payment reserve 2,788 2,788 2,788
3,288,291 3,281,842 3,351,759
============================== =========== ============ ===========
The capital redemption reserve was created as a result of a share capital restructuring in earlier years. There is no policy of regular transactions affecting the capital redemption reserve.
The foreign currency translation reserve represents exchange differences relating to the translation from the functional currencies of the Group's foreign subsidiaries into GBP.
The equity-based payments reserve represents a reserve arisen on (i) the grant of share options to employees under the employee share option plan and (ii) on issue of warrants under terms of professional service agreements.
10. Borrowings
30 June 31 December 30 June
2017 2016 2016
GBP GBP GBP
Non-current
Convertible loan notes 389,802 - -
------------------------ ----------- ------------ --------
389,802 - -
Current
Unsecured loan 50,633 318,314
Convertible loan notes 1,041,000
------------------------- ----------- ------------ --------
1,091,633 318,314 -
----------- ------------ --------
1,481,435 318,314 -
======================== =========== ============ ========
Loan facilities entered into in 2017:
i) On 17 May 2017 the Company repaid GBP750,000 of the GBP1,000,000 loan entered into with Sanderson Capital Partners Limited in December 2016. The balance of GBP250,000 was transferred to a new loan facility entered into with Sanderson Capital Partners Limited on 10 May 2017. Under the terms the total fees of 20% of the principle amount is payable to the lender in advance at the inception. No interest to be accrued on the principle.
ii) On 15 May 2017 the Company entered into a loan agreement with YA II PN Limited for US$1,250,000, with a repayment date of 15 May 2018 although this can be extended, by mutual agreement, for a further 6 months for a fee of 6% of the then outstanding principal.
Interest applies on the loan at a rate of 14% although with a three-month repayment holiday on both interest and principal. An implementation fee of US$100,000 is immediately deductible from the principal amount on transfer of funds.
The lender may elect, at its discretion, to convert all or part of the loan repayments (interest and principal) into shares in the Company, at, the lower of a share price of 0.6p and, 90% of the Company's lowest daily volume weighted average price('VWAP') during the five days prior to conversion.
Selected notes to the consolidated financial statements
for the six months ended 30 June 2017 (continued)
In addition, the agreement includes the issue of Warrants to the lender at 50% cover of the principal amount, and at a 20% premium to the VWAP in the 30 days preceding the agreement. Consequently the Company today issued 80,749,333 warrants at an exercise price of 0.6p per warrant. The warrants issued shall have a subscription period of three years.
iii) On 24 May 2017 the Company entered into a loan agreement with Deloan Investments Limited, a company controlled by Dmitry Suschov, a non-executive director of the Company for a convertible loan of up to US$500,000. The loan is convertible at any time into Ordinary Shares in the Company, at a price of 0.475p per Ordinary Share.
Under the terms of the agreement interest accrues on the loan at a rate of 15% which is to be satisfied by either cash payments or shares in the Company at a price of 0.475p per ordinary share.
In addition, the lender will be issued with a warrant to subscribe for 10,000,000 Ordinary Shares in the Company at any time for the next three years at an exercise price of 1p.
The purpose of the loans from i to iii above is to refinance existing loan and to use for general working capital purposes.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FMGZLVKNGNZM
(END) Dow Jones Newswires
September 26, 2017 02:00 ET (06:00 GMT)
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