Last checked at 24 Jan 2018 07:00
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
Completion of transaction
Eurasia, London quoted PGM and gold producer, is pleased to announce that, further to the announcement of November 2017, Mr Alexei Churakov has now completed the purchase of a 7% minority stake in Eurasia's subsidiary ZAO Kosvinsky Kamen (KK) which solely owns and holds the West Kytlim project. After this transaction, KK is 68% owned by Eurasia.
Alexei Churakov is a former Goldman Sachs and Morgan Stanley investment banker focused on mergers and acquisitions and in financing deals in the mining sector. On 20 November 2017 it was announced that Mr Churakov had completed a direct equity investment in Eurasia Mining PLC and that a further investment into Eurasia's subsidiary Kosvinsky Kamen was underway. This transaction has now been completed.
Highlights:
· US$350,000 in cash, invested directly at the project level by Mr Churakov, representing the purchase of a minority interest of 7% of Kosvinsky Kamen ('KK'), the Company owning the West Kytlim PGM and gold mining project.
· Funds to contribute to the Company's 2018 mining plan which is now finalised and funded.
· Pre-season preparation including ground works, lease of machinery, staffing, logistics and pre-ordering of consumables to be executed in the coming weeks.
From the last audited accounts dated 31 December 2016, KK generated no profit and a turnover of £139,862; the value of the assets of KK was stated as £2.9 million.
Commenting on the transaction Eurasia's executive chairman said: "We are most pleased with the level of confidence shown by Mr Churakov in both Eurasia Mining PLC and now also the West Kytlim Project itself. These funds will be deployed to increase our production budget at the West Kytlim project in 2018. Furthermore, we look forward to progressing both our key projects during 2018, by implementing our mine plan for a successful mining season at West Kytlim, and by progressing our mining application for the exciting and much larger Monchetundra Project in the Kola Peninsula."
2018 Mining season at West Kytlim
The production schedule for the 2018 mining season has now been finalised with the chief use of these funds contributing to Eurasia's 2018 production budget. A significant increase and reorganisation of production is planned for 2018 at West Kytlim with mining to progress at two open pit sites, one mined under contract and the other by Eurasia itself as owner-operator. Mr Churakov is actively involved in planning the 2018 mining season including the introduction of a potential new contractor to operate alongside Eurasia's own operations. The reserves targeted at Malaya Sosnovka in the 2016 and 2017 trial mining seasons remain a focus for the 2018 season, as well as the Kluchiki and Bolshaya Sosnovka mine sites, which are also ready for development. Having multiple sites operating concurrently helps to mitigate the risk of stoppages for maintenance at one operational site.
Enquiries:
Eurasia Mining Plc
Christian Schaffalitzky
+44 (0)207 932 0418
WH Ireland Limited
Katy Mitchell/James Sinclair-Ford
+44 (0)161 832 2174
Beaufort Securities
Elliot Hance
+44 (0)207 382 8300