REG - Eurasia Mining PLC - Corporate Update

Eurasia MiningAnnouncement

07/12/2023 07:00

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RNS Number : 9395V  Eurasia Mining PLC  07 December 2023

 

 

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").

 

 

7 December 2023

 

Eurasia Mining Plc

 

Corporate Update

Eurasia Mining Plc ("Eurasia" or the "Company"), the palladium, platinum,
rhodium, iridium and gold mining company, provides a general corporate update.

 

Corporate Strategy and Possible sale of Russian assets

The Company has prioritised the sale of its Russian assets and, as advised in
the Company's 19 September Interim Results statement, this workstream remains
the main focus of Eurasia's senior executive team. It is important to
emphasise that, despite the now extended timeline, active discussions are
maintained with counterparties based in Hong Kong and Russia, but as yet no
terms have been agreed and, as ever, there can be no guarantee that Eurasia
will enter into binding agreements.

 

Cash position

The Company's cash assets at 30 November 2023, were approximately £517,000.
The Company does not currently hold US treasury notes. The value of unsold
concentrate within Inventories at 30 June 2023 was approximately £3.5
million. No major capital expenditure items are forecast for Russian assets
for 2024 and notwithstanding the proposed sale of concentrate (see below), the
Company has sufficient working capital to meet ongoing obligations until the
end of Q12024.

 

The Company's cash reserves are held in USD and GBP accounts outside of Russia
and therefore not directly or indirectly exposed to Rouble foreign exchange
gains or losses against other major hard currencies.

 

West Kytlim

The mine and all of its machinery and infrastructure are being maintained in a
sale ready state, with no production expected on site in 2024, as has been the
case for all of 2023. The stockpile of inventory from the 2022 mine season is
being held in secure storage off site. As previously notified, discussions
regarding the sale of the 2022 concentrate remain ongoing.

 

Monchetundra and Nyud Project

The Company notes its announcement of 8 February 2022, which updated the
reserves and resources at the Monchetundra Project (Loipishnune and West
Nittis deposits) and the Nittis-Kumuzhya-Travyanaya ("NKT") area. No further
updates under the JORC code are planned.

 

With respect to the Nyud project, as the Rosgeo Agreement has expired no
further announcements will be made regarding reserves and resources on such
assets, which are no longer under the control of the Company. Expenditure on
the Nyud Project was written off in the Company's annual results for the year
ended 31 December 2022. Despite a transferrable legal entitlement to the Nyud
project remaining in place, no further work on this project is currently
planned by the Company.

 

Travyanaya area

The Company recently received a license for the Travyanaya area, directly
adjacent and to the north of the NKT, after a long application period. The
license was issued in November and is valid for seven years. The license
occurs on strike from already identified mineralisation in the NKT and was
pegged to fully enclose the NKT structure to the northwest. While the Company
is not intending to carry out any work on this licence in 2024, it will be
added to the assets available for possible sale.

 

 

Legal matters

As notified on 15 November 2023, the legal proceedings between the Company and
Queeld Investments Limited ("Queeld") and Mispare Limited ("Mispare") were
stayed by consent and an Order was made by consent.  In accordance with the
Order, replacement share certificates are being held by solicitors acting
for Queeld and Mispare until 5 March 2024, at which point the
share certificates will be released to Queeld and Mispare.

 

The Company's dispute with its former legal adviser Gowling WLG (UK) LLP over
unpaid invoices amounting to approximately £108,000 remains the subject of
ongoing legal discussions, with the aim of reaching a satisfactory conclusion
without recourse to further proceedings. Further updates will be made as
appropriate.

 

Sanctions

Eurasia continues to closely monitor all regulatory requirements and maintains
a regular dialogue with its legal advisers regarding the potential impact of
any US, UK or EU sanctions applicable to the Company, its operations, and
assets. Eurasia remains satisfied that its current operations are not
prohibited under US, UK or EU sanctions rules. The Company also affirms that
it does not engage, and has not engaged, with any sanctioned persons, entities
or agencies.

 

Moscow Exchange Listing

Further to the Company's announcement of 23 November 2021, Eurasia confirms
that it is not currently exploring a dual listing on the Moscow Exchange.

 

Chairman Christian Schaffalitzky commented: "We appreciate our shareholders'
support as we continue to pursue the possible sale of our Russian assets. Our
main project at West Kytlim has seen no production of concentrate through
2023. We have maintained the assets in a sale ready state. Currently, the
Company is not developing further mining assets. The Board and senior
executives remain hopeful of a successful conclusion to the sale of assets
process and we look forward to updating our shareholders in this regard as
appropriate."

 

 

For further information, please contact:

 

Eurasia Mining Plc

Christian Schaffalitzky

+44 (0)207 932 0418

 

SP Angel Corporate Finance LLP (Nomad and Broker)

Jeff Keating / David Hignell / Adam Cowl

+44 (0)203 470 0470

 

Yellow Jersey PR (Financial PR)

Charles Goodwin / Shivantha
Thambirajah

+44 (0)207 932 0418

eurasia@yellowjerseypr.com (mailto:eurasia@yellowjerseypr.com)

 

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