TIDMEUA
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 GBP3.0 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 GBP5.6 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 GBP0.3 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
For further information, please contact:
Eurasia Mining Plc +44 (0) 20 7932 0418
Christian Schaffalitzky / Keith
Byrne
SP Angel (Nominated Advisor and
Joint Broker)
Jeff Keating / David Hignell /
Adam Cowl +44 (0) 20 3470 0470
Optiva Securities (Joint Broker)
Christian Dennis +44 (0) 20 3137 1902
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END
UPDIBMLTMTABMJJ
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