Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
West Kytlim update/ Loan facility draw down and issue of equity
Eurasia Mining plc ("Eurasia") the Russia focused PGM and gold production and development company is pleased to confirm that mining is underway at West Kytlim and concentrate continues to be produced. An interruption necessary to refurbish the water supply was resolved within three days and production of concentrate has continued since. A more detailed announcement will follow in due course.
Separately, Eurasia confirms that it has executed a further draw down of its loan facility with Sanderson Capital Partners Limited("Sanderson") as per the agreement outlined in the announcement dated 1 August 2016. Pursuant to the terms of the Agreement, Sanderson had agreed to make available £700,000 which can be drawn down any time until 31 December 2016 and must be used by Eurasia for working capital purposes. The facility may be fulfilled in £100,000 tranches not less than 30 days apart and must be repaid on or before 28 January 2017. This is the second draw down of the facility; an initial draw down was executed when the agreement was finalized on the 1 August 2016.
Furthermore, each drawdown shall be subject to a fee of £10,000 payable as each tranche of the facility is drawn and may be met by the issue of Ordinary Shares in the company. Eurasia confirms that 1,538,462 ordinary shares ("New Shares") have been issued to Sanderson in lieu of the drawdown fee and application has been made to admit the new shares to trading on AIM.
Admission is expected to become effective on 26 September 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 1,434,674,517 Shares with voting rights attached (one vote per Share). There are no Shares held in treasury. The 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 MD at Eurasia comments ' This is a particularly busy time for Eurasia as we are active at all three of the company's projects. We continue to work to produce from this season's mining allotment at West Kytlim and have recently (see the announcement dated 9 September 2016) shipped our first batch of concentrate to the Refinery in Ekaterinburg. Our geologists and contractors are finalizing a TEO and reserves statement to be used in application for a discovery certificate before end of year at the Monchetundra hardrock PGM project, while SGS laboratories in Chita are engaged in the final round of optimized cyanide recovery tests on samples from the Semenovsky Tailings Project. The Sanderson facility provides essential working capital to drive these objectives, and we look forward to updating on developments in the near term.'
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
+44 (0)207 382 8300
This information is provided by RNS