JOHANNESBURG (miningweekly.com) – Aim-listed Eurasia Mining has entered into new funding facilities for about $2-million with three parties, including its existing funding provider Sanderson Capital Partners.
The funds will be used for working capital.
The loan agreement entered into with Sanderson in December 2016 for £1-million, has been repaid and a new facility comprising a principal amount of £250 000 has been arranged with Sanderson over a 12-month term.
The Sanderson loan agreement is interest fee and is repayable by May 12, 2018.
Eurasia has applied for immediate drawdown of the Sanderson loan, and accordingly a drawdown fee of 15%, and a 5% legal and documentation fee for a total of £50 000 are now due.
Under the terms of the loan agreement, the loan must be used for working capital purposes and Sanderson has the right to convert all or part of the loan into ordinary shares of the company at a price of 0.475p a share.
Eurasia secured a further investment of $500 000 from Eurasia nonexecutive director Dmitry Suschov.
Lastly, it signed an agreement, arranged through London-based institution Riverfort Global Capital, with a consortium of investors, including Cuart Growth Capital Fund I and YA II PN, for $1.25-million.
The loan agreement, which is repayable in May 2018, was executed with YA as the lead investor.
Eurasia Mining is developing three Russia-based platinum group metals and gold projects located in the West Kytlim, in the Central Urals; Monchetundra, on the Kola peninsula; and Semenovsky, in the Southern Urals.