LONDON (ShareCast) - (Sharecast News) - Palladium, platinum, rhodium, iridium and gold producing company Eurasia Mining announced a placement of $15m at 26p per share on Monday, to finance its joint venture with Rosgeo.
The AIM-traded firm said it had entered into a securities purchase agreement for a private placement of 41,551,563 new shares and warrants with institutional investors at a price of 26p per share and associated warrant, for gross proceeds of £11m, or about $15m, before fees and expenses.

It said the net proceeds were intended to be used primarily to finance the joint venture with Rosgeo, as it announced on 26 March, including Nyud, Moroshkovoe and other major Rosgeo joint venture platinum group metals and battery metals open-pit deposits.

"The directors are delighted that professional institutional investors offered to support Eurasia's fundamentals and its strategic options, as we continue to develop the company including the upcoming acquisitions of Nyud, Moroshkovoe and other significant Rosgeo JV platinum group metals and battery metals open pit deposits," said executive chairman Christian Schaffalitzky.

"Furthermore, while our board and management continue to be significant shareholders, the directors are confident that the private placement will further strengthen Eurasia's negotiating position."

The company said its cash position prior to the placement was about $20m, with no debt, and after significant investments made into the West Kytlim operating mines and plants expansion, as well as into the Monchetundra project as it announced on 1 September.

Its cash position after the placement would be around $35m.

After receiving a "more sizable" offer, the directors said they had decided to limit the size of the private placement relative to the offer to minimise shareholder dilution, and at the same time place the company in a stronger position.

The warrants would have an exercise price of 26p per share, and could be exercised at any time after issue and prior to the three-year anniversary of the issue date.

They were expected to be issued on 23 September.

"We have decided to advance the Rosgeo joint venture, 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 platinum group metals and battery metals that are future-facing in relation to the fast-growing hydrogen and electric vehicle markets, respectively," added chief executive officer and managing director James Nieuwenhuys.

At 0841 BST, shares in Eurasia Mining were down 6.92% at 24.2p.

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