rns18 Aug 2020 08:03
gust 2020
EURASIA MINING PLC
("Eurasia" or "the Company")
General Update and Institutional Placing at 22.5p
Eurasia Mining plc, the palladium, platinum, rhodium, iridium and gold producing company, operating the established West Kytlim Mine in the Urals, and also the operator of the Monchetundra Project comprising two predominantly palladium open pit deposits located 3km away from Severonickel, one of Norilsk Nickel's largest base metals and PGM processing facilities, near the town of Monchegorsk on the Kola Peninsula, is pleased to provide a general update and announce the successful completion of a US$10m equity placing (the "Placing") with institutional investors at a price of 22.5p per share, which is equal to the closing price on 17 August 2020.
The net proceeds from the Placing, which was undertaken by the Company's Joint Broker Optiva Securities, will be used towards scaling up the production of West Kytlim, as announced in the Company's Annual Report dated 1 July 2020.
33,927,057 new ordinary shares (the "Placing Shares") will be issued pursuant to the Placing, representing 1.23 per cent of the Company's fully diluted share capital of 2,758,701,681 ordinary shares, as enlarged by the Placing.
Following the completion of the Placing the Company will have cash of approximately US$$10.5m. If required, the Company also has access to the previously announced US$1m credit line which is provided by way of a loan agreement between Eurasia and Hamomelia Services Limited, a company owned and controlled by Dmitry Suschov, a director of Eurasia.
West Kytlim update
· Production is ongoing at site and unaffected by Covid-19 with payments for metal already received
The Company produces PGM (palladium, platinum, rhodium, iridium) and gold at the West Kytlim Mine on an owner operator basis, having decided recently to acquire full control of the operation. The project was brought to commercial scale production initially with the use of mining contractors in the 2018 and 2019 mining seasons. Using contractors allowed the project to be brought into production with minimal shareholder dilution and no debt financing, thereby maximising value for the Company's shareholders. Following two mining seasons, during which Eurasia's own key staff gained further mining and operational experience, a decision was taken to acquire full control of the operation. The Company had maintained personnel at site throughout for 30% of the revenue from the mine, with roles in exploration and infill drilling, geological control, mine engineering as well as being responsible for the final upgrade of the PGM concentrate at an onsite laboratory. As announced on 26 November 2019, after taking over the mining function from the contractors, Eurasia now retains 100% of the revenue from West Kytlim.
2020 Mining season
A fleet of new equipment and machinery was delivered to site during 2020, tailored to workflows. Covid-19 related safe
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