Eurasia Mining PLC (LON:EUA) shares jumped higher on Monday, recouping some of Friday’s falls, after the firm’s chairman Christian Schaffalitzky said the group’s directors “believe the Company is in a strong financial position going forward”.
In a statement after the market close on Friday highlighting a warrant exercise, Schaffalitzky added: “With the recent share price increase a number of shareholders have indicated they wish to exercise their warrants and hold these shares long term. We are grateful to them and likewise the Directors have indicated they are holding their 22% in the Company on a long-term basis.”
The producer of palladium, platinum, iridium, rhodium and gold in Russia said it received notification from holders on Friday that warrants over 16.05mln ordinary shares had been exercised at a price of 0.53p each. The consideration for the exercise amounted, in aggregate, to a cash value of £85,000.
In addition, the company said, cash payments from the refinery, for the sale of metal from the operating West Kytlim mine and metal already delivered, are due before year-end. It noted that the payments for platinum will include a final amount for other metals namely palladium, iridium, rhodium and gold.
Given this, the company added, it is not planning any new share placings in the foreseeable future.
The chairman concluded: “As the Company prepares for a significant increase in production at the West Kytlim mine next year, the funds from our operations and from the warrants will be used to prepare for mining at the second site and to upgrade our wholly-owned equipment, now that we are no longer using a sub-contractor and enjoy 100% of the margin as opposed to 30-35% previously.”
In early afternoon trading, Eurasia shares topped the London market gainers board, up 75% at 1.86p.
— Adds more detail, share price —