Last checked at 7 Dec 2023 07:00
This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").
7 December 2023
Eurasia Mining Plc
Corporate Update
Eurasia Mining Plc ("Eurasia" or the "Company"), the palladium, platinum, rhodium, iridium and gold mining company, provides a general corporate update.
Corporate Strategy and Possible sale of Russian assets
The Company has prioritised the sale of its Russian assets and, as advised in the Company's 19 September Interim Results statement, this workstream remains the main focus of Eurasia's senior executive team. It is important to emphasise that, despite the now extended timeline, active discussions are maintained with counterparties based in Hong Kong and Russia, but as yet no terms have been agreed and, as ever, there can be no guarantee that Eurasia will enter into binding agreements.
Cash position
The Company's cash assets at 30 November 2023, were approximately £517,000. The Company does not currently hold US treasury notes. The value of unsold concentrate within Inventories at 30 June 2023 was approximately £3.5 million. No major capital expenditure items are forecast for Russian assets for 2024 and notwithstanding the proposed sale of concentrate (see below), the Company has sufficient working capital to meet ongoing obligations until the end of Q12024.
The Company's cash reserves are held in USD and GBP accounts outside of Russia and therefore not directly or indirectly exposed to Rouble foreign exchange gains or losses against other major hard currencies.
West Kytlim
The mine and all of its machinery and infrastructure are being maintained in a sale ready state, with no production expected on site in 2024, as has been the case for all of 2023. The stockpile of inventory from the 2022 mine season is being held in secure storage off site. As previously notified, discussions regarding the sale of the 2022 concentrate remain ongoing.
Monchetundra and Nyud Project
The Company notes its announcement of 8 February 2022, which updated the reserves and resources at the Monchetundra Project (Loipishnune and West Nittis deposits) and the Nittis-Kumuzhya-Travyanaya ("NKT") area. No further updates under the JORC code are planned.
With respect to the Nyud project, as the Rosgeo Agreement has expired no further announcements will be made regarding reserves and resources on such assets, which are no longer under the control of the Company. Expenditure on the Nyud Project was written off in the Company's annual results for the year ended 31 December 2022. Despite a transferrable legal entitlement to the Nyud project remaining in place, no further work on this project is currently planned by the Company.
Travyanaya area
The Company recently received a license for the Travyanaya area, directly adjacent and to the north of the NKT, after a long application period. The license was issued in November and is valid for seven years. The license occurs on strike from already identified mineralisation in the NKT and was pegged to fully enclose the NKT structure to the northwest. While the Company is not intending to carry out any work on this licence in 2024, it will be added to the assets available for possible sale.
Legal matters
As notified on 15 November 2023, the legal proceedings between the Company and Queeld Investments Limited ("Queeld") and Mispare Limited ("Mispare") were stayed by consent and an Order was made by consent. In accordance with the Order, replacement share certificates are being held by solicitors acting for Queeld and Mispare until 5 March 2024, at which point the share certificates will be released to Queeld and Mispare.
The Company's dispute with its former legal adviser Gowling WLG (UK) LLP over unpaid invoices amounting to approximately £108,000 remains the subject of ongoing legal discussions, with the aim of reaching a satisfactory conclusion without recourse to further proceedings. Further updates will be made as appropriate.
Sanctions
Eurasia continues to closely monitor all regulatory requirements and maintains a regular dialogue with its legal advisers regarding the potential impact of any US, UK or EU sanctions applicable to the Company, its operations, and assets. Eurasia remains satisfied that its current operations are not prohibited under US, UK or EU sanctions rules. The Company also affirms that it does not engage, and has not engaged, with any sanctioned persons, entities or agencies.
Moscow Exchange Listing
Further to the Company's announcement of 23 November 2021, Eurasia confirms that it is not currently exploring a dual listing on the Moscow Exchange.
Chairman Christian Schaffalitzky commented: "We appreciate our shareholders' support as we continue to pursue the possible sale of our Russian assets. Our main project at West Kytlim has seen no production of concentrate through 2023. We have maintained the assets in a sale ready state. Currently, the Company is not developing further mining assets. The Board and senior executives remain hopeful of a successful conclusion to the sale of assets process and we look forward to updating our shareholders in this regard as appropriate."
For further information, please contact:
Eurasia Mining Plc
Christian Schaffalitzky
+44 (0)207 932 0418
SP Angel Corporate Finance LLP (Nomad and Broker)
Jeff Keating / David Hignell / Adam Cowl
+44 (0)203 470 0470
Yellow Jersey PR (Financial PR)
Charles Goodwin / Shivantha Thambirajah
+44 (0)207 932 0418
eurasia@yellowjerseypr.com