Eurasia Mining PLC (LON:EUA) has had the scheduled repayments of its loan agreement, arranged by Riverfort Global Capital Ltd in May, significantly reduced and the final payment date extended so the firm can direct more cash into mining preparation.
In a statement, the AIM-listed firm said the scheduled loan repayments for the next four months are reduced to US$25,000 per month in cash plus interest, and the final loan repayment date of 15 May 2018 is extended to 15 September 2018 to cover the main production season at West Kytlim.
READ: Eurasia Mining lodges mine permit for Monchetundra
The group also said that for the next four months, there will be no conversion of principal on the loan if Eurasia’s share price remains below 0.34p - a 51% premium to yesterday's close of 0.225p.
The loan renegotiated was for US$1.25mln, with two other loans making up the total of US$2mln agreed in May - one of which for S$500,000 now having been repaid.
Eurasia said that 80,749,333 warrants have also been cancelled and replaced by 109,196,618 new warrants at a price of 0.34p, a 20% premium to the VWAP in the 30 days preceding the loan amendment.
It added that a 10% restructuring fee is to be recouped at the end of the loan’s term, in addition to the principal amount.
The group said all of this is designed to direct more cash into work on the mining site, and at the same time to avoid share dilution.
Grace period appreciated
Eurasia’s CEO, Christian Schaffalitzky commented: “We appreciate the grace period here offered by our funding partner and the confidence they have shown in the Company generally and specifically in the West Kytlim Mine and its ability to generate revenue in the 2018 mining season.”
He added: “Our team is currently busy working on the best options to ensure a successful mining season in 2018, as the Monchetundra project progresses through permitting.
“Furthermore, the Company continues to pursue new options that could enhance these projects, provide greater commodity diversity and to increase production volumes.'
-- Updating to clarify renegotiated loan amount --