Is it me, or is there something just a little fishy about the fact that within half an hour of the RNS yesterday for the re-scheduling of the loan repayments, the condition of which was that there would be none if the shareprice stayed under 0.34, that the MM's had the share price up to 0.34, where it magically topped off and then receded.
Hopefully this doesn't mean that the company have been mugged by Riverfort, but the BoD should be on thier guard and checking the position, and if it turns out to be the case, then they should be looking to get out of the Riverfort deal ASAP.
If they need financing then they should be going down the Primary Bid route, which at least is much less diluting to existing shareholders.
Having held EUA for well over 6 years and been in the AIM market for the best part of 12 years this is my first ever post. Having taken a back seat and not been involved in any discussions on any share. I've always invested in mining shares but have been a quiet investor. I went to a EUA presentation a couple of Months back and met Christian Schaffalitzky and Michael De Villiers. Christian spoke about the work at the various sites, getting the mining license in 2018 for Monchetundra. My point to this post is what has really changed with this company, it is in full production at West Kytlim and is waiting for the Mining licence for Monchetundra. The only reason for the fall in the share price is due to the loan which the company took out with Sanderson Capital Partners. Which is being paid back in company shares and then being dropped into the market and sold.
This is due to be submitted by the end of September. I can see it getting fast tracked like our other licence we obtained at WK.
At least then we will be a proper company and hopefully a shake up for the management side. Or even get a Q&A page on their website..
Bradford are doing well thanks and we had a good win on Saturday. Who is your local side then as it is a very tight league this year.
This share I think has great potential.
I see you are in Amryt as well. One I added about a month ago and very happy so far. My Amryt investment has replaced my GWP holding which had been a great multi-bagger for me.
Talking of potential multi-baggers....have you anything in EOG yet? It's expectatiions in the next year and licences held do not match it's market cap. Should be 4 times it's current value. IMHO of course.
Bantam...now happily retired...but unhappily getting aches and pains.
Projects update and Monchetundra off-take agreement negotiations
Eurasia, the platinum, palladium, iridium, rhodium and gold production and development company, is pleased to report progress towards submission of the production license application for its Monchetundra Project, following the issue of the discovery certificate for the project's 1.9 million ounce palladium equivalent (platinum and palladium) Reserves and Resources, announced on 17 July 2017.
- All necessary contracts covering mine design, blasting, mine surveying, ecological monitoring and land rehabilitation have now been assigned to third parties. Assigning these contracts is a necessary step towards a successful mining license application.
- The application for a mining license is expected to be officially lodged, on schedule, in September.
- Off-take agreement negotiations are progressing with Glencore (the third largest international commodity trader and resource project investor), Sinosteel (China's state owned EPC contractor and a major mining investor and commodities importer into China) and other major players that cannot be disclosed at this stage, for the entirety of the life of mine output. It is hoped an agreement will be reached with one of these parties in the near future and this agreement will integrate with Eurasia's already agreed, and signed, Engineering, Procurement, Construction and Financing ("EPCF") contract with Sinosteel which includes financing of $150 million as a 10 year facility at 6m LIBOR plus 3.5 per cent.
- Mining at West Kytlim, Eurasia's operating platinum, gold, iridium and rhodium mine in the Ural Mountains is progressing.
- An increase in reserves was calculated over the mining area at Malaya Sosnovka owing to higher than expected mining grades and ore body extensions discovered in the 2016 mining season. These reserves increases have been approved and are being developed as part of the 2017 mining season.. Separately a mining allotment and quota has been agreed over the Kluchiki Area for the next season of production in 2018.
- A total of 1,490 metres of resource upgrade drilling was completed earlier in the year, at the Bolshaya Sosnovka and Kluchiki areas. All of these samples have now been processed to allow conversion of C2 category reserves to C1 category reserves. This work, managed by Eurasia but funded by Eurasia's contractor Region Metall, ensures mineable reserves for the 2018 and 2019 mining seasons.
- A further 390 metres of large diameter infill sampling is planned for the autumn of this year.
- In addition, revenue from the sale of metals has commenced from the refinery at Ekaterinburg, with shipments now occurring on a regular basis.
Background to Monchetundra Project off-take agreement negotiations
Eurasia notes an increased interest from refineries seeking Platinum Group Minerals ("PGM") and copper/nickel concentrates fueled by a tightening in the international supply of quality concentrates. The status-quo situation of recent years is reversing and refineries, reacting to a looming shortage of quality feedstocks, are reaching for quality upstream assets. This is well demonstrated by a recent transaction in the PGM and copper/nickel refining space over the Kevitsa Mine in Finland (270 kilometres West of Monchetundra) purchased by Boliden for a cash consideration of $712 million. The Kevitsa Mine is considerably lower grade than Monchetundra, although of larger tonnage. For more information please visit our web address below;
Well if the BOD ever update us with what they are doing. We might just get some interest from the market. MT licence application?
That project has got a whole lot more profitable in the last month.
Platinum and Palladium are flying!
I think our team are working hard behind the scenes on getting MT sold. CS has been at this a long time and it's finally going to pay off.
Mining licence will obviously be the big can opener.
Funding is sorted for this season.
WK may have a good season but I'm not banking on it.
All about MT..
This could make me very very wealthy.
Looking through the past RNS's the Monchetundra project reserves are worth $1.7Billion for the Palladium/Platinum group metals. However, in addition there are also a shade over $525M worth of Gold, Copper & Nickel + undisclosed amount of cobalt, so potentially a vlaution of around $2.25B.
If you look at the RNS that advised of the Sinosteel EPC contract signing, it identifies that they (EUA) are in discussions for either outright purchase or JV of the project. For an outright purchase I would expect us to get between 10% and 15% of the overall reserve value, so being pessimistic and taking the 10% figure that would be $225M, which with the current shares in issue would be around 15 cents a share or around 12p. I think I could live with that!
To me it seems that it is only a matter of time before the Monchetundra project gets bought out, and the receipt of the discovery certificate assigns the legal rights to EUA now, so I think that the game is on. It is just that the market hasn't caught up with that fact yet, but I believe it will do sometime soon.
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