Last checked at 21 Dec 2016 07:00
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
Loan Agreement and Issue of Equity
Eurasia is pleased to announce that it has entered into a new funding facility with a syndicate led by Sanderson Capital Partners Limited ("Sanderson"), of up £1 million (this includes the £500,000 drawn down under the previous loan arrangement with Sanderson, announced on 1 August 2016). . The directors believe this loan will provide the Company with sufficient working capital for the immediate future, with cashflow generation from West Kytlim due to begin in April when production commences.
The facility comprises the following;
- A £500,000 unsecured, interest free, fixed term loan due for repayment no later than 15 May 2017
- The loan can be drawn down in two tranches of £150,000 tranches no less than 30 days apart and two tranches of £100,000, with tranches two, three and four subject to successfully achieving certain specified project deliverables;
- The option for Sanderson to include the £500,000 drawn down from the previous arrangement with Eurasia (announced on 1 August 2016) into this facility (taking the total to £1m).
- A fee payable in 30,769,231 ordinary shares in the company shall be issued as soon as is practicable to Sanderson as an arrangement fee on signing.
- In addition, a drawdown fee of 15% will be paid by Eurasia to Sanderson for each drawdown, and a further 15% fee will be paid if Sanderson elects to include the previous £500,000 into the facility.
Issue of Equity
Following the execution of the Agreement, the Company has today issued new shares in lieu of both the arrangement fee and initial drawdown fee. The total number of shares issued amounts to 33,581,731 ordinary shares ("New Shares") (30,769,231 in respect of the arrangement fee, and a further 2,812,500 calculated as 15% of £150,000 at a share price of £0.008).
Admission is expected to become effective on 29 December 2016 and the New Shares will rank pari passu in all respects with the Company's existing Ordinary Shares in issues.
For the purposes of the Financial Conduct Authority's Disclosure and Transparency Rules ("DTRs"), the issued ordinary share capital of the Company following the allotment of the New Shares consists of 1,497,373,790 Shares with voting rights attached (one vote per Share). There are no Shares held in treasury. This total voting rights figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interests in, or a change to their interest in, Eurasia under the DTRs.
Christian Schaffalitzky, Managing Director said: "We are pleased to have arranged our financing with Sanderson, essential in maintaining liquidity in the business without diluting our shareholders, while allowing us to further our projects in Russia through Q1 2017, as we anticipate the cash flow from our West Kytlim project. We expect to provide a further strategic project update before close of business for 2017.
Enquiries:
Eurasia Mining Plc
Christian Schaffalitzky/Michael de Villiers
+44 (0)207 932 0418
WH Ireland Limited
Katy Mitchell/Nick Prowting
+44 (0)161 832 2174
Beaufort Securities
Elliot Hance
+44 (0)207 382 8300
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.