LONDON (Alliance News) - Metal Tiger PLC and Eurasia Mining PLC on Friday said they have agreed an extension until March 15 for the Russia-based Semenovsky tailings project option agreement.
This is to allow for additional time for a review of recently-received project data and for liaison with a third party who has expressed an interest in project participation via Metal Tiger.
Metal Tiger will pay a further USD25,000 to Eurasia for the extension, bringing total payments to date to USD50,000.
The latest project data demonstrates "significantly improved" project financials, including a 64% increase in net present value to USD23 million, the companies said, which reflects improved project economics and a favourable rouble to US dollar exchange rate.
"We are pleased to secure the option period extension which provides the additional time to review the new information received on the project and to liaise with third parties as appropriate," Metal Tiger Chief Executive Paul Johnson said in a statement.
"The project fundamentals are looking increasingly robust and we are extremely pleased to see this strengthening which has occurred in part from the work undertaken during the due diligence phase. We look forward to finalising our work and reporting back to market in due course," he added.
"We are pleased to continue working on the project with Metal Tiger. We believe the project is capable of providing a good return on investment for both companies. Work will continue on due diligence work to ensure that these robust economics can be sustained and that the permitting of the project proceeds favourably," Eurasia Managing Director Christian Schaffalitzky said.
In a separate statement, Eurasia said it has executed a loan agreement with Sanderson Capital Partners Ltd, under which Eurasia can draw down GBP250,000 any time until February 14 to be used for working capital purposes.
The loan must be repaid before May 11 and Eurasia said it intends to draw down the full amount immediately.
No interest will be accrued on the loan, but it is subject to a GBP62,500 arrangement fee, which Eurasia said it will satisfy by the issue of 11.4 million shares at 0.55 pence each, and a documentation and legal fee of GBP7,500.
"We are pleased to have arranged this interim financing with Sanderson. The company is very busy looking at financing options with mining planned to commence at West Kytlim this summer. We believe this facility gives us time to choose the best option," Schaffalitzky said.
Shares in Eurasia were trading down 3.7% at 0.650 on Friday morning, while Metal Tiger shares were up 4.4% at 0.940p.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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