AIM-quoted mining company Eurasia Mining (LON: EUA) is raising £3.15m at 4.37p/share. This placing with UK and US investors has been limited to reduce the level of dilution for existing shareholders. The share price slipped 4.21% to 4.55p.
Each share comes with a warrant to subscribe for a share at 8.74p. They last two years. The company had previously extended 41.55 million warrants exercisable at 26p each until the end of March 2025, but these were not likely to yield any cash.
This funding will enable Eurasia Mining to stop using the 2.5p/share convertible Sanderson Capital Partners facility that was announced last September. The conversion price was a premium when the deal was announced and there were warrants exercisable at 4p each.
The cash will be used to maintain the quotation in London and obtain a listing of the Astana International Exchange in Kazakhstan. It will also put the company in a stronger position in its attempt to sell its Russian mining assets.