Loan Agreement and Issue of Equity

RNS Number : 8846F

Eurasia Mining PLC

01 August 2016

 

Eurasia Mining plc (AIM: EUA)

("Eurasia" or the "Company")

Loan Agreement and Issue of Equity

Eurasia confirms today that it has executed a Loan Agreement with a syndicate led by Sanderson Capital Partners Limited (the "Agreement").  Pursuant to the terms of the Agreement, Sanderson has agreed to make available £700,000 which can be drawn down any time until 31 December 2016 and must be used by Eurasia for working capital purposes, of which £100,000 has been immediately drawn down. The loan must be repaid on or before 28 January 2017.

The Facility comprises the following:

-           An unsecured, interest free (save in the event of a default), fixed term loan due for repayment no later than 28 January 2017;

-           The loan can be drawn down in five £100,000 tranches no less than 30 days apart and a final tranche of £200,000 on agreement with Sanderson, with tranches two, three, four and five subject to successfully achieving certain specified project deliverables;

-           An arrangement fee of £145,000, to be satisfied by the issue of 26,363,636 ordinary shares in the Company at a price of 0.55p ("New Shares");

-           In addition,  a further drawdown fee of £10,000 payable on each £100,000 tranche of the facility as it is drawn (which shall be satisfied by the issue of 1,818,182 Ordinary Shares in the Company at each drawdown).

Issue of Equity

Following the execution of the Agreement, the Company has today issued the New Shares and, given the drawdown of the first £100,000, has further issued 1,818,182 Ordinary Shares in lieu of the drawn down fee (a total of 28,181,818 Ordinary Shares (the "Total New Shares"). Application has been made to admit the Total New Shares to trading on AIM. Admission is expected to become effective on 4 August 2016 and the Total New Shares will rank pari passu in all respects with the Company's existing Ordinary Shares in issues.

For the purposes of the Financial Conduct Authority's Disclosure and Transparency Rules ("DTRs"), the issued ordinary share capital of the Company following the allotment of the New Shares consists of 1,433,136,055 Shares with voting rights attached (one vote per Share). There are no Shares held in treasury. This total voting rights figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interests in, or a change to their interest in, Eurasia under the DTRs.

Christian Schaffalitzky, Managing Director said: "We are pleased to have arranged this financing with Sanderson. It removes some uncertainty in the medium term as we bring West Kytlim into production with income due in the next quarter. It retains the flexibility to freely investigate additional or substitute funding alternatives and the Board considers it to be competitive vis a vis other funding options currently on offer, given the prevailing market conditions. The Company is also looking at financing options for its other projects, bearing in mind the objective of minimizing dilution for shareholders."

Enquiries:

Eurasia Mining Plc

Christian Schaffalitzky/Michael de Villiers

[phone]

WH Ireland Limited

Katy Mitchell/Nick Prowting

[phone]

Beaufort Securities

Elliot Hance

[phone]

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

 

END

 

 

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