Eurasia Mining Plc (EUA.L) Potential asset sale, conclusion of the FSP and other updates

Eurasia Mining Plc (“Eurasia” or the “Company”), the palladium, platinum, rhodium, iridium and gold producing company, is pleased to announce that a proposal has been received for the acquisition of certain assets of the Company, the conclusion of the strategic review and Formal Sale Process (“FSP”) and an update on its operations.

As announced via RNS on 14 January 2021, Eurasia and its advisers have engaged with a wide range of parties interested in acquiring either the assets and/or the Company. The Company has more recently focused its attention, including providing due diligence access, on a limited number of potential bidders who had shown consistent interest in Eurasia and its high-quality asset base.

However, after conclusion of the joint venture with Rosgeo (“Rosgeo JV”) in which Eurasia will gain a 75% equity stake in nine PGM and battery metals assets (four of which are post Russian Feasibility Study with state approved reserves) with a total of 104.6Moz of Platinum equivalent (“Pt eq”) Russian Code reserves and resources in the immediate vicinity of the Company’s Monchetundra Project on Kola (as announced on 26 March 2021), the Company has now received several proposals including a proposal from a credible party for the potential acquisition of substantially all of Company’s assets. The Board has decided to focus on this potential asset sale.

The Board has therefore also decided that it is time for the Company to exit from the Formal Sale Process, which has been prolonged due in part to COVID-19 lockdowns-related delays in conducting site visits (as announced on 14 January 2021).

Until a transaction is finally concluded there can be no certainty that a transaction will occur or on what terms.

Following this announcement, the Company is no longer considered to be in an offer period, as defined in as defined in the Code, and the requirement to make disclosures under Rule 8 of the Takeover Code has now ceased.

West Kytlim update

As announced via RNS of 15 March 2021, further to the approved DFS the Technical Project prepared by GIP was submitted to the Russian authorities. The Technical Project is based on concurrent production at three pits, the first two being Kluchiki and Bolshaya Sosnovka (the largest pit at the entire deposit of West Kytlim).

Eurasia is now pleased to confirm that the Technical Project was formally approved and 3 plants will be in operation this year (as opposed to 1 plant last year). The 1st plant has commenced production and the 2nd and the 3rd are expected to commence production in this current quarter. Not only does this allow an increase in production volumes, but also mitigates the single asset risk that the Company was exposed to in previous years.

The Technical Project to bring grid power to the mining sites is being tendered to further improve the environmental footprint of the operations and thereby contribute to Eurasia’s commitment to best-in-class ESG standards (for more information on the ESG at West Kytlim please refer to the RNS of 15 March 2021).

The Board will continue to explore value creating options for the Company. Eurasia’s current advisers will be advising on these value creating options.

Christian Schaffalitzky, Executive Chairman of Eurasia commented: “The Directors are committed to maximising the value for all the shareholders, and we are delighted to have received a proposal from a credible party that could allow us to pay a significant dividend to all shareholders. We are also committed to the concurrent development of the Company in two PGM districts: in the Urals, where we have recently had our DFS and Technical Project approved to expand volumes with 3 plants in production this year (as opposed to 1 plant in previous years); and in the second district of Kola, where we concluded the Rosgeo JV to significantly expand our presence both in PGM and in battery metals segments. The Board has a strong confidence in our opportunity to create a globally significant PGM and battery metals producer that can be achieved through our Rosgeo JV”.

James Nieuwenhuys, CEO and Managing Director of Eurasia commented: “After significantly strengthening our position in the open pit PGM district of the Urals and in the PGM and battery metals district of Kola recently, we are enthusiastic to advance a potential deal that provides an opportunity to monetise the value to Eurasia’s shareholders. We are also focused on the creation of a globally significant producer of PGM and battery metals. We believe the timing is perfect taking into account the consistent supply disruptions in PGM and battery metals segments”.

Further AIM Rule Disclosures

Shareholders should note that one of the potential transactions proposed is one to which AIM Rule 15 (the fundamental disposal rule) would likely apply. Accordingly, a circular would be published by the Company and the transaction would be conditional on the consent of the Company’s shareholders being given in a general meeting.

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