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Eurasia Mining raises funds; updates on progress at West Kytlim

Things are progressing well at West Kytlim, with production now approaching capacity. 1.3kg has been produced in a single day and the directors believe this level could be possible with this process in the future

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Eurasia will repay about £300,000 of the Riverfort loan

Eurasia Mining plc (LON:EUA) has raised £500,000 through a significantly oversubscribed placing of shares and warrants at 0.3p a pop.

The warrants, attached to the shares on a one-for-one basis, are exercisable at 0.6p a share up to and including May 16, 2020. Eurasia Mining shares closed at 0.42p last night.

READ Eurasia Mining looks at new loan as production picks up​

The funds will partly be used to substantially reduce the convertible loan facility arranged by Riverfort Global Capital to around £440,000. Having received repayment of around £300,000 of the loan, Riverfort has agreed to not convert any of the remaining loan balance into Eurasia shares until September 10 of this year at the earliest.

The remainder of the funds raised will be used for working capital.

“It is timely and strategic to reduce and contain our Riverfort Loan funding facility as the Company enters the next phase of value growth,” said Christian Schaffalitzky, the executive chairman of Eurasia.

In a separate announcement, Eurasia updated the market on operations at its West Kytlim mine, the second largest alluvial platinum mine in the world.

The mine is now approaching its capacity of around 2,000 cubic metres (m3) per day. An initial 'first fill' test was completed successfully on May 3, with the first sample returning 428 grams (g) of raw platinum, for an average grade approaching 1g per m3.

Several successive days of continuous production followed, with the largest amount produced in a single day being 1.3 kilograms of raw platinum on 9th May 2018.

Shipments to the refinery in Ekaterinburg are expected to commence on May 11.

Mining at 2,000m3 per day is expected to continue for the foreseeable future until either the end of the mining season in early November 2018 or when the platinum and gold-bearing reserves at Malaya Sosnovka have expired. When the latter occurs mining the idea is to move on to the much larger Kluchiki area.

"We are extremely pleased by the significantly increased levels of raw platinum production already occurring at West Kytlim with our new contractors and equipment in place to maximise the 2018 mining season. We eagerly anticipate the Monchetundra mine permit now that it is in the final stage of the approval process,” said Schaffalitzky.

"The board is focused on delivering value to shareholders and we look forward to providing further updates to market over the coming weeks and months," he added.  

Quick facts: Eurasia Mining PLC

Price: 7.2 GBX

AIM:EUA
Market: AIM
Market Cap: £196.18 m
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