Eurasia Mining announces financial difficulties, seeks funding

Suspended Eurasia Mining is facing increasing financial difficulties, with its current working capital only sufficient to meet ongoing obligations until November 2024.

This limited financial runway has spurred Eurasia Mining to explore urgent funding options. The company said it is in advanced discussions with a lender regarding a trade finance loan facility. This potential facility aims to bridge any gap until the company can either sell its inventory of PGM concentrate or its assets.

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Eurasia cautions that there is no guarantee this loan facility will be secured.

While Eurasia Mining expects to have additional sources of working capital, primarily from its stored inventory of PGM concentrates, the board of directors is prioritising the potential sale of the company’s assets as a solution to its financial challenges.

Fortunately for investors, Eurasia shares remain suspended pending the posting of the annual report, so any downside in shares resulting from the news will be avoided.

However, the company faces the risk of being delisted from AIM if the suspension continues for six months, as per AIM Rules.

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