REG - Eurasia Mining PLC - Corporate and Operational Update

Eurasia MiningAnnouncement

11/04/2023 11:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230411:nRSK8265Va&default-theme=true

RNS Number : 8265V  Eurasia Mining PLC  11 April 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN REGULATION NO.
596/2014 (AS IT FORMS PART OF RETAINED EU LAW AS DEFINED IN THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018) AND IS IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS
UNDER ARTICLE 7 OF THAT REGULATION.

11 April 2023

Eurasia Mining Plc

 

Corporate and Operational Update

Eurasia Mining Plc ("Eurasia" or the "Company") the palladium, platinum,
rhodium, iridium and gold producing company provides a general operational
progress update for the first quarter of 2023.

West Kytlim

The electric dragline, which was fully assembled in the prior quarter, has
completed final high voltage electrical testing and the contractual 72-hour
continuous performance test. Stripping by the electric dragline is ongoing at
site, and further operations await a general thaw and abundant running water
in order to commence washing of gravels. The power line and electric dragline
projects, both completed last year, are expected to have a positive impact on
mining operations for 2023, with a significant reduction in operating costs
expected. The diesel requirement over the winter period was reduced compared
to the same period in the prior year, with site buildings now running on
hydro-derived grid power.

The mine product (a 'black sand' concentrate containing platinum, palladium,
iridium, rhodium and gold) from the 2022 mining season remains safely stored
for later refining. Final decisions regarding the optimal strategy for and the
timing of the refining of the concentrate are yet to be made. A further
announcement regarding the concentrate will be made as soon as practicable.

Kola Projects

Monchetundra

The Definitive Feasibility Study for Monchetundra ("DFS") was submitted in
December 2022 and notice acknowledging receipt from Rosnedra, the relevant
state authority, was received by the Company. Eurasia recently received a set
of questions from the expert panel of the State Reserves Committee, to which
the Company responded. A final opinion on the DFS, to be provided by Rosnedra,
is anticipated in the coming weeks.

Nittis-Kumuzhya-Travynanaya ("NKT")

The NKT project comprises a brownfield Tier-1 scale deposit: 305Kt of Nickel,
143Kt of Copper, 57 tons of PGM and Gold (11.2Moz of Platinum equivalent) as
estimated by Wardell Armstrong International as JORC-compliant resources for
an underground mining operation (see the Company's RNS dated 16 December 2021
for additional information on NKT).

Eurasia's current work on NKT focuses on refining the geometry of ore bodies
to determine the feasibility of an additional open pit operation, to run in
parallel with underground mining. Historical metallurgical reports, which
confirm metal recoveries, are also now available to assist the Company.  This
work may permit an upgrade to higher reserve and resource categories for a
subsequent NKT JORC update.

 

Nyud Project and Rosgeo Agreement

Eurasia's 100% owned subsidiary Yuksporskaya Mining Company retains an
entitlement to 75% of Monchegorskoye LLC, the license owner of the Nyud
Project.

The Nyud Project was brought to the Company through a binding agreement
entered into with Rosgeo in March 2021. This agreement has now expired
following a two year evaluation period.

Future developments regarding the Rosgeo agreement are being considered and
further announcements will be made as appropriate.

Possible sale of Russian assets

The Company continues to consider options for the sale of all of Eurasia's
interests in Russia. These include the West Kytlim operating mine, the
Monchetundra Project mining license, the NKT brownfield project, and the
entitlement to the Nyud brownfield project.

The Board acknowledges shareholder frustration regarding the duration of the
sale process, however  also notes recent precedent transactions which have
successfully completed despite the geopolitical situation. Further updates
regarding the sale process will be made as appropriate and, at present, there
can be no guarantee that Eurasia will enter into binding agreements.

Christian Schaffalitzky, Executive Chairman of Eurasia, commented:

"We continue to advance our projects in the Urals and Kola Peninsula, despite
the ongoing conflict in Ukraine. The winter stripping programme, utilising our
new electric dragline, continues at West Kytlim and we anticipate a final
opinion on the Monchetundra DFS from Rosnedra in the coming weeks.
Concurrently, Eurasia is committed to pursuing the possible sale of our
Russian assets. This remains our priority and the Board shares the frustration
of our shareholders at the duration of this process. We appreciate the ongoing
support of our shareholders and look forward to providing further updates
regarding future developments as appropriate."

Cash position

The Company's cash position at the end of March 2023 stands at approximately
£3.0 million, held in sterling and dollar denominated accounts outside of
Russia.

Additionally, the Company still holds the 2022 West Kytlim mine product with
an approximate value of £5.6 million, in addition to VAT receivable resulting
from 2022 VAT payments.

Legal Disputes

Queeld and Mispare

The Company notes recent speculation regarding a claim brought against Eurasia
by Queeld Investments Limited, a Cyprus registered company ("Queeld") and
Mispare Limited, a BVI registered company ("Mispare") (together the
"Claimants"). The case involves a dispute regarding the Claimants' alleged
loss of share certificates issued in respect of Eurasia securities. Having
taken legal advice, the Company believes the Directors will be in breach of
the Company's Articles if new share certificates are issued without an
appropriate indemnity in place, which protects the interests of the Company,
its Registrar, and its shareholders generally. As no such indemnity has been
provided by the Claimants, new share certificates have not been issued.

Logik

The Company notes a further case filed by Logik Developments LTD ("Logik").
The Company is currently liaising with its legal advisers regarding Logik's
claim in a sum of circa £0.3 million and which concerns a Heads of Terms
entered into by the Company last year with Logik, which subsequently lapsed.

Further notifiable updates regarding these claims will be made as appropriate.

Annual Results for the Year Ended 31 December 2022

The audit for the year ended 31 December 2022 is progressing and the Company
expects to publish the 2022 audited Annual Report and Accounts by early June
2023, with the 2023 Annual General Meeting to follow thereafter.

Sanctions

The Company continues to monitor and review all relevant sanctions legislation
with its legal advisers.

Further announcements regarding the potential impact of any further UK or EU
sanctions will be made as appropriate.

A copy of this announcement is also available on Eurasia's website at:

https://www.eurasiamining.co.uk/investors/news-announcements
(https://www.eurasiamining.co.uk/investors/news-announcements)

 

 

For further information, please contact:

 Eurasia Mining Plc                             +44 (0) 20 7932 0418
 Christian Schaffalitzky / Keith Byrne
 SP Angel (Nominated Advisor and Joint Broker)  +44 (0) 20 3470 0470

 Jeff Keating / David Hignell / Adam Cowl
 Optiva Securities (Joint Broker)               +44 (0) 20 3137 1902

 Christian Dennis

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDIBMLTMTABMJJ