20th Sep 2021 08:55
(Alliance News) -Â Eurasia Mining PLC on Monday said it has raised GBP11 million to finance its joint venture with Russian state-owned company Rosgeo.
Eurasia has entered into a securities purchase agreement for a private placement of 41.6 million shares and warrants to buy up to a further 41.6 million shares to institutional investors at a price of 26 pence per share and associated warrant.
This will raise gross proceeds of GBP11 million, before the deduction of placement agent's fees and offering expenses.
Shares in Eurasia were down 6.9% at 24.20p in London early Monday.
Though having received a "more sizable offer", the directors decided to limit the size of the private placement relative to the offer to minimise shareholder dilution.
"The net proceeds of the private placement are intended to be used primarily to finance the joint venture with Rosgeo, as announced via RNS dated 26 March 2021, including Nyud, Moroshkovoe and other major Rosgeo JV platinum group metals and battery metals open pit deposits," said Eurasia.
Executive Chair Christian Schaffalitzky said the firm is confident the fundraise will "further strengthen Eurasia's negotiating position".
Chief Executive & Managing Director James Nieuwenhuys added: "We have decided to advance the Rosgeo JV, as its projects' potential has become more evident during the course of the confirmatory work being done by Wardell Armstrong International in relation to both PGM and battery metals (nickel, copper and cobalt) that are future facing metals in relation to the fast-growing hydrogen and EV markets respectively."
By Lucy Heming;Â [email protected]
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