Eurasia Mining plc (LON: EUA) have seen their shares rally on Wednesday afternoon after the firm updated shareholders on its Russian operations.
Eurasia Mining PLC is an international mineral exploration company, listed on the Alternative Investment Market (AIM), focussed on Russia, it has an active interest in platinum and gold mining. The firm has interests in Russia but also has headquarters in London.
Shares of Eurasia Mining rallied 15.92% to 2p. 4/12/19 13:53BST.
At the end of October, the firm saw its shares surge following a confident chairman statement which reassured shareholders in an uncertain time for the firm.
The firm reported that it had it received alerts from holders on Friday that warrants over 16 million ordinary shares had been exercised at 53 pence per share, which led to shares reaching a five year high.
Eurasia reported on Wednesday that it is edging closer to securing the final approval for the Tipil permit, a platinum group metals target located in Russia.
Eurasia said: “The application has been approved by the Russian federal bodies and requires only a formal meeting of the local mines commission.”
Eurasia said: “The directors believe the company is already established as the dominant player in Kola platinum group metals with its production license until 2038 and its exclusive right for the flanks under applicable laws.
“Receipt of approval for the flanks application would allow the company to become further established in the region generally, allowing it to pursue its internal long term corporate strategy of establishing a new global centre for platinum group metals on the Kola Peninsula.”
Research in Russia found that the whole of Monchetundra, which includes areas where Eurasia does not currently have a licence for, has a potential 40 million ounces of platinum group metals.
Eurasia said, however: “This data has not been independently verified by Eurasia and other than the area covered by the company’s existing licence, the company does not yet have any other licences in the area. The company would need to verify the data in the Russian Cadastre through additional work and drilling.”
Competitors in the mining industry have been busy giving updates to the market.
On Monday, FTSE100 listed Fresnillo saw their shares in red following a modest prediction for their annual production expectations, which left shares in red.
The developments made by Eurasia will be positive for shareholders, where rivals have seen slumps in production.
Shareholders of Eurasia will have to patient, but there could be long term benefits if Eurasia can convert these discoveries into solid trading figures.
