Eurasia Mining Regulatory News (EUA)

2 Mar 2006 15:06

Eurasia Mining PLC02 March 2006 EURASIA MINING PLC (the "Company" or "Eurasia") Issue of Unsecured Convertible Redeemable Loan Notes Eurasia announces the completion of £700,000 financing by way of a successfulplacing of Series A Unsecured Convertible Redeemable Loan Notes of £10,000 each(the "Loan Notes") The financing is being used principally to complete the acquisition of the threemajor Platinum projects in Kola, which have been acquired under a joint ventureagreement with Anglo Platinum Limited ("Anglo Platinum") and also for workingcapital purposes. Eurasia is now working in two regions containing several platinum projects inRussia which are currently funded by its joint venture partner Anglo Platinum.In Kola, drilling will commence within eight to ten weeks, following processingof a large batch of samples obtained in 2005 from which results are expectedshortly. In the Urals, drilling work continues on which results will also bereleased shortly. Loan Notes Of the total amount raised management and staff of Eurasia have subscribed forLoan Notes amounting to £220,000 and accordingly the following interests in theCompany must be disclosed: Shares Options Warrants Convertible Convertible Loan Notes Loan Notes (Share Equivalent) G C Fitzgerald 1,197,857 225,000 1,035,714 £50,000 1,000,000M P Martineau 915,928 700,000 1,017,857 £50,000 1,000,000C Schaffalitzky 1,838,428 1,200,000 1,067,857 £50,000 1,000,000 The terms of the Loan Notes are as follows: • at any time until 31 March 2008 the Loan Notes may be converted, atthe election of the holder, into ordinary shares in the Company at a price of 5pper share; • interest will accrue on the Loan Notes at a rate of 8%, payablequarterly in arrears on 31 March, 30 June, 30 September and 31 December.Interest can be paid in cash or shares (such shares will be issued at a price ofeither 5p per share or the current market price per share, whichever isgreater); • the holder of each Loan Note will also be issued with 200,000 warrantsto purchase ordinary shares in the Company at a price of 5 pence per share atany time until 28 February 2008; • at any time from 31 July 2007 until 31 March 2008 the Company mayredeem the Loan Notes by repaying the principal amount, any interest accrued andtwo additional quarterly interest payments (the "Redemption Payment"). ThisRedemption Payment can also be paid in any combination of cash or shares at 5pence per share, at the holder's request; and • if at any time before 31 March 2008 the Company becomes the subject ofa successful or agreed takeover, the holder of the Loan Notes shall have theright to convert the principal and any accrued interest on the Loan Notes intoordinary shares in the Company at a price of 5 pence per share. The Loan Notes will be not be admitted to trading on AIM. Financial Adviser The Company is pleased to announce that Loeb Aron & Company ("Loeb Aron") havebeen retained as Financial Advisers to the Company and that they have arrangedand placed the above-mentioned Loan Notes. Loeb Aron will continue to assistthe Company with further capital raising, project acquisitions, promotion andcorporate development. For further information contact: Michael Martineau Eurasia Mining PLC +44 (0) 20 7495 4877Christian SchaffalitzkyMichael de Villiers Laurie Beevers W H Ireland +44 (0) 7903 164 004 Allan Piper First City Financial Public Relations +44 (0) 20 7436 7486 +44 (0) 7736 064 982 This information is provided by RNS The company news service from the London Stock Exchange