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Eurasia agrees new loan of up to £1m

By BFN News | 07:48 AM | Wednesday 21 December, 2016


Eurasia has entered into a new funding facility with a syndicate led by Sanderson Capital Partners Limited of up £1 million. This includes the £500,000 drawn down under the previous loan arrangement with Sanderson, announced on 1 August. The directors believe this loan will provide the company with sufficient working capital for the immediate future, with cashflow generation from West Kytlim due to begin in April when production commences. 7 The facility comprises the following; - A £500,000 unsecured, interest free, fixed term loan due for repayment no later than 15 May 2017 - The loan can be drawn down in two tranches of £150,000 tranches no less than 30 days apart and two tranches of £100,000, with tranches two, three and four subject to successfully achieving certain specified project deliverables - The option for Sanderson to include the £500,000 drawn down from the previous arrangement with Eurasia (announced on 1 August 2016) into this facility (taking the total to £1m). - A fee payable in 30,769,231 ordinary shares in the company shall be issued as soon as is practicable to Sanderson as an arrangement fee on signing. - In addition, a drawdown fee of 15% will be paid by Eurasia to Sanderson for each drawdown, and a further 15% fee will be paid if Sanderson elects to include the previous £500,000 into the facility. Following the execution of the Agreement, the Company has today issued new shares in lieu of both the arrangement fee and initial drawdown fee. The total number of shares issued amounts to 33,581,731 ordinary shares (30,769,231 in respect of the arrangement fee, and a further 2,812,500 calculated as 15% of £150,000 at a share price of £0.008). Story provided by StockMarketWire.com

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