Last checked at 25 Nov 2019 12:30
Eurasia Mining plc
("Eurasia" or "the Company")
Clarification of Understanding with CITIC & VTB Capital
Eurasia, an established producer of palladium, platinum, iridium, rhodium and gold announces that, further to the announcement dated 24 October 2019 (the "Announcement"), the Company continues to progress its conversations with CITIC, one of China's investment banks and VTB Capital, one of Russia's investment banks (together the "Banks") as they continue to explore possible strategic options for the Company's current mining assets (the Company's Kola and Urals assets (the "Assets")).
However, as set out in the Announcement, no engagement letter has yet been signed with the Banks, although they continue to work on the Company's behalf; no agreement on success fees has yet been reached; and the Company also reiterates that there can be no guarantee that any transaction will occur nor that there can be any guarantee as to the value that could be achieved for any of the Assets in any potential transaction.
Eurasia Mining Plc
Christian Schaffalitzky/ Keith Byrne
+44 (0)207 932 0418
WH Ireland Limited (Nomad and Joint Broker)
Katy Mitchell / James Sinclair-Ford
+44 (0)161 832 2174
First Equity Limited (Joint Broker)
Jason Robertson
Tel: +44 (0)20 7374 2212
Optiva Securities (Joint Broker)
Christian Dennis
Tel: +44 (0) 20 3137 1902
About Eurasia Mining PLC (LSE: EUA)
Eurasia Mining is a long-established palladium, platinum, iridium, rhodium and gold focused production company quoted on the London Stock Exchange AIM market, with an operating PGM mine in the Ural Mountains palladium open pit deposit at Monchetundra. In addition, Eurasia maintain an interest in the Semonovsky Gold in Mine Tailings Project, an asset demonstrating potentially low-cost new-term gold production potential.
Eurasia's two core projects are:
The West Kytlim operating mine (of which the Company owns 68%), which is the largest alluvial platinum reserve in the world currently, with 2,283 kilograms of raw platinum in reserves, and resources and resource potential to a further 10 tonnes of raw platinum. A single washplant has operated on site during 2018 and 2019, with further increases in production planned from multiple washplants. The mine was previously contracted to generate cashflow from which to finance further capitalisation of the asset. All contractors were retired from the operation in September 2019 and since then Eurasia has been operating on an owner operated (100% of revenue) basis.
The Monchetundra Project (of which the Company owns 80%), 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 agreement fully finances the Project through building of the 1.7m tonnes per annum processing facility at the Monchetundra Project.