10th May 2018 12:51
LONDON (Alliance News) - Eurasia Mining PLC on Thursday said operations at its West Kytlim mine are now back up and running following the winter while also raising funds to reduce a debt facility.
Shares were 12% higher on Thursday at a price of 0.48 pence each.
Eurasia said platinum mine West Kytlim, in Russia's Sverdlovsk Oblast, is now fully operational after a thaw at the start of May, and it has now achieved "several" successive days at near full capacity.
Machinery is operating as planned, it added, and grades are "considerably" higher than expected, at nearly one gram of platinum per metre cubed, meaning initial production has increased.
Executive Chairman Christian Schaffalitzky said: "The directors believe that the 4.6 kilograms produced over the first six days is remarkable considering the total production of just 6kg by our previous contractor in the 2017 mining season.
"Grades seem to be consistently and considerably higher than we had calculated, and the machinery operating very efficiently in terms of costs, ore volumes and precious metal recovery. We may look forward to more continuous production updates from site in the coming mining season."
Eurasia also on Thursday said it has raised GBP500,000 through placing 166.7 million new shares at 0.30 pence each with a one-for-one warrant attached, exercisable at 0.60p.
Of the proceeds, GBP300,000 will be used to reduce the loan arranged by Riverfort Global Capital Ltd in May 2017, with the remaining balance on the loan now GBP440,000. The rest will be used for working capital purposes.
Schaffalitzky said: "It is timely and strategic to reduce and contain our Riverfort Loan funding facility as the company enters the next phase of value growth."
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