Eurasia Mining plc (LON:EUA) said Venus Garden Holdings Limited (VGH) is planning a direct equity investment in the West Kytlim gold and platinum mine in Russia.
VGH - owned by Alexei Churakov, who has held positions at Goldman Sachs and Morgan Stanley – has subscribed £76,336 for 27,262,814 new ordinary shares of 0.1p each in the share capital of the AIM-listed precious metal explorer at a price of 0.28p.
VGH has indicated its intention to buy a 7% minority stake in Eurasia's subsidiary ZAO Kosvinsky Kamen, which owns the West Kytlim project. But Eurasia said a there can be no guarantee of a deal.
Russia-focused Eurasia added that Beaufort Securities Limited has raised a further £104,800 before expenses at a price of 0.28p over 37,428,550 new ordinary shares in the group’s issue of equity.
The funds will be used for working capital purposes.
An application will be made for the 64,691,364 first new shares and second new shares to be admitted to trading on AIM. Dealings in these shares are expected to start “on or around” 22 November, Eurasia said.
The total number of issued ordinary shares in the company will then be 1,627,511,122 ordinary shares and the total number of voting rights in the group will be 1,627,511,122.
Eurasia chairman Christian Schaffalitzky said: "We are pleased to shortly welcome Alexei as a shareholder and investor in the company. The directors believe his planned direct investment in the West Kytlim project will be commensurate with his assistance in developing this asset and we believe it is beneficial for the company, bearing in mind both his financing background with Goldman Sachs and Morgan Stanley and his mining industry background.”