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Eurasia Mining chairman says operations ‘ongoing’ without any impact from coronavirus pandemic

The platinum miner said while the pandemic had not affected its operations, it was maintaining its £600,000 cash position as well as a currently unused credit line of US$1mln (£806,505) from its largest shareholder

Eurasia Mining PLC - Eurasia Mining chairman says mining operations ‘ongoing’ without any impact from coronavirus

Eurasia Mining PLC (LON:EUA) executive chairman Christian Schaffalitzky has said the company’s mining operations are “ongoing without any impact of [coronavirus]” as it updated investors on its progress.

The AIM-listed miner said while the pandemic had not affected its operations, it was maintaining its £600,000 cash position as well as a currently unused credit line of US$1mln (£806,505) from its largest shareholder.

READ: Eurasia Mining shares suspended as it clarifies relationship with CITIC

Eurasia also said it is in currently in discussions with CITIC to clarify its relationship with the group, while other conversations on its projects with potential buyers had continued at and after the global mining conferences of Indaba and PDAC, and following the temporary closure of the platinum group metals (PGM) mining industry in South Africa.

In an operational update, the company said it has signed a lease agreement for additional machinery and equipment for its West Kytlim project, while it is also working on a feasibility study for the entire mining license area at the site.

Meanwhile, the company said it expected a licence for the flanks areas of its Monchetundra project in Russia soon after the application was approved by the  Russian ministry of defence in December.

Eurasia added that it is in “advanced discussions” with a new Nominated Adviser (Nomad) and broker and believes the appointment will take place before the notice period for its current Nomad, WH Ireland, expires on April 30.

“The board is pleased to make progress on the operational side, on the appointment of the new Nomad, and on its strategic discussions”, Schaffalitzky said.

“With our flanks application imminent, a developing supply crunch from stalled production by the major PGM producers and the recovery of PGM demand from China underway in March 2020 with both Industrial PMI and Composite PMI above 50, we are in a good shape and, although all companies are affected by the uncertainties of the current environment, I believe we are well-positioned to take advantage of the right strategic options for our assets", he added.

Eurasia’s shares are currently suspended on AIM at 7.2p pending the nomad appointment.

Quick facts: Eurasia Mining PLC

Price: 39.8 GBX

AIM:EUA
Market: AIM
Market Cap: £1.1 billion
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