Eurasia Mining PLC Strategic Financing & Broker Appointment (5795N)

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: [phone] 
 Christian Schaffalitzky / Keith Byrne 
WH Ireland Limited (Nominated Adviser & Broker)  Tel: [phone] 
 Katy Mitchell / James Sinclair-Ford 
First Equity Limited (Joint Broker)              Tel: [phone] 
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

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May 10, 2018 02:05 ET (06:05 GMT)