Eurasia Mining (LON: EUA) have had their shares surge, allowing them to regain ground after shares slumped on Friday, this follows a statement from the Chairman explaining that the firm was in a strong financial position.
Chairman Christian Schaffalitzky said the group’s directors “believe the Company is in a strong financial position going forward.
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 has received alerts from holders on Friday that warrants over 16 million ordinary shares had been exercised at 53 pence per share.
The total sum of these new released shares amounted to £85,000.
Additionally, the company said that cash payments for the sale of metal from the operating West Kytlim mine and metal already delivered, are due before year-end.
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.”
Even though Eurasia remains a young company, with a market cap of just below £46 million, it seems that there is renewed optimism about the firms potential.
The rise has caused Eurasia’s shares to be at their highest point within their five year records, showing an appetite for Eurasia shares by investors.
Currently, shares of Eurasia Mining are trading at 1.8p per share seeing a monumental 68.73% rise across Monday trading. 28/10/19 15:08BST.
In the mining sector, there have been updates to Centamin (LON: CEY) have experienced a output decline, Serabi Gold Plc (LON: SRB) have shown strong production figures in their third quarter and Hochschild Mining (LON: HOC) have given investors reassurance after a questionable trading update.