Eurasia Mining Plc (LON: EUA), a mining company specializing in platinum, iridium, rhodium, ruthenium, palladium (“PGM”), and gold, is pleased to announce that it has secured a trade finance loan agreement with Sanderson Capital Partners Limited (“Sanderson”) for up to £2.5 million (the “Trade Finance Loan” or the “Loan”).
Key Points:
- As announced on 28 August 2024, the purpose of the Trade Finance Loan is to provide the Company with working capital.
- To manage its working capital more effectively, all Company Directors have agreed to defer payment of their accrued fees and expenses from the past 12 months, along with any future compensation while any part of the Trade Finance Loan remains outstanding.
- The Company’s Chairman, Christian Schaffalitzky, has pledged 94,619,517 of his ordinary shares in Eurasia as security for the Trade Finance Loan (the “Chairman’s Pledge”). These shares will be held in escrow by Eurasia’s solicitors, OBH Partners, Dublin, while any portion of the Trade Finance Loan is still unpaid. No other security has been provided for the Trade Finance Loan.
- The Trade Finance Loan is interest-free and is to be repaid by 29 August 2025, or by another date mutually agreed upon by the parties.
- The Loan can be converted into shares at Sanderson’s option (excluding the first 90 days of the agreement), at an average conversion price of 2.7p per share, which is a 17% premium to the closing price on 28 June 2024 (the last trading day before the suspension of trading in the Company’s shares).
- Sanderson has agreed not to convert any portion of the Trade Finance Loan into shares in Eurasia within the first 90 days of the agreement.
- The Company may draw down the Trade Finance Loan in up to five tranches, with each tranche dependent on achieving certain milestones (detailed below).
- The first two tranches, totaling £1.0 million, are tied to the Company’s proposed resumption of trading on AIM, which was also announced today and will take effect at 7:30 am on Monday, 9 September 2024.
The Company’s full Annual Report, including the audited financial statements for the year ended 31 December 2023 (the “Annual Report”) will be posted to those Eurasia shareholders electing to receive paper format notifications, next week. The Company is grateful to the remaining shareholders choosing to receive digital notifications and the Annual Report is also available for download from the Company’s website at: https://www.eurasiamining.co.uk/investors/financial-reports.
Following the publication of the 2023 Annual Results and the Annual Report, the suspension of the Company’s securities from trading on AIM is expected to be lifted at 07.30 a.m. on Monday 9 September 2024.
Christian Schaffalitzky, Eurasia’s Executive Chairman commented: “We are delighted that our long-term shareholder Sanderson Capital Partners reached out to help bridge the potential liquidity gap, should it arise. I have a long standing and successful business relationship with the partners of Sanderson including with Eurasia previously, where Sanderson helped fund the first production at West Kylim. Sanderson remains a long-standing shareholder that shares the Company’s strategic goals, with the possible sale of our assets being our main focus”.
Tanvier Malik, Founder and Partner of Sanderson commented: “Sanderson enjoys a strong relationship with Eurasia and has been supporting Eurasia over the long term from funding first production in 2016 to the most recent participation in a capital market transaction in 2020 at 22.5p. We are pleased to help Eurasia achieve its goals in the near future and we are delighted with the continued support and belief held by the Directors and major shareholders contributing alongside us, as our interests continue to be aligned with the Company”.
The West Kytlim operating mine (of which the Company owns 68%), which is the second largest alluvial platinum reserve in the world currently, with 2,283 kilograms of raw platinum in reserves, with resources and resource potential to a further 10 tonnes of raw platinum.
The Monchetundra Project (of which the Company owns 80%), has state-approved reserves and resources of 2 million ounces of palladium equivalent (predominantly palladium, and includes 28,124 tonnes of copper and 30,410 tonnes of nickel), resulting in a total in-situ metal value of approximately USD$2 billion, before metal recoveries and all costs.
Eurasia has in place (signed October 2016) an EPCF (Engineering Procurement Construction and Financing) contract with Sinosteel, a state-owned Chinese corporation focused on mining.
