RNS20 Sep 2021 08:35
Eurasia Mining Plc ("Eurasia" or the "Company"), the palladium, platinum, rhodium, iridium and gold producing company, is pleased to announce that it has entered into a securities purchase agreement for a private placement (the "Private Placement") of 41,551,563 new ordinary shares of the Company (the "Placing Shares") and warrants (the "Warrants") to purchase up to 41,551,563 new ordinary shares of the Company (the "Warrant Shares") to institutional investors at a price of 26 pence per ordinary share and associated Warrant, being the closing mid-market price of the Company's ordinary shares on 17 September 2021, for gross proceeds of approximately £11m, or approximately US$15m (not including any gross proceeds from the exercise of the Warrants), before deducting placement agent's fees and offering expenses.
The net proceeds of the Private Placement are intended to be used primarily to finance the joint venture with Rosgeo ("Rosgeo JV"), as announced via RNS dated 26 March 2021, including Nyud, Moroshkovoe and other major Rosgeo JV platinum group metals ("PGM") and battery metals open pit deposits.
The cash position of the Company prior to the Private Placement is about $20m with no debt and after significant investments made into the West Kytlim operating mines and plants expansion, as well as into the Monchetundra project as announced on 1 September 2021. The cash position of Eurasia after the Private Placement will be approximately US$35m.
After receiving a more sizable offer, the Directors have decided to limit the size of the Private Placement relative to the offer to minimise shareholder dilution and at the same time place the Company in a stronger position.
H.C. Wainwright & Co. is acting as the exclusive placement agent in the United States for the Private Placement.
The Warrants have an exercise price of 26p per ordinary share and may be exercised at any time upon issuance and prior to the 3-year anniversary of the issuance date. The Warrants are expected to be issued on 23 September 2021.
The total number of ordinary shares to be issued pursuant to the Private Placement, and assuming exercise of all of the Warrants, is 83,103,126 new ordinary shares of 0.1 pence each in the Company ("Ordinary Shares"), which would represent approximately 2.87 per cent of the Company's enlarged fully diluted share capital of 2,895,111,558 Ordinary Shares.
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